7. On January 1, 2020, S Corporation issued $10 million of 8%,10-year convertible bonds at 104. The bonds pay interest on June 30 and December 31. Each $1,000 bond is convertible into 50 shares of no par common stock. F Company purchased 40% of the issue as an investment. On July 1, 2023, F converted all its bonds into common stock of S. S uses the straight-line method for amortization. Required: 1. Prepare journal entries for the issuance of the bonds by the issuer. 2. Prepare the journal entries for the conversion on the books of the issuer. 7. On January 1, 2020, S Corporation issued $10 million of 8%,10-year convertible bonds at 104. The bonds pay interest on June 30 and December 31. Each $1,000 bond is convertible into 50 shares of no par common stock. F Company purchased 40% of the issue as an investment. On July 1, 2023, F converted all its bonds into common stock of S. S uses the straight-line method for amortization. Required: 1. Prepare journal entries for the issuance of the bonds by the issuer. 2. Prepare the journal entries for the conversion on the books of the issuer