Assume XYZ Company issued 2000 bonds with a par value of $100 at a $50,000 total discount. Each bond can be converted to 10 shares of common stock. The common stock has a par value of $1. Prepare the following journal entries:

A. Sale of the bonds

B. Conversion of the bonds when $45000 of the original discount remains unamortized. The firm offered $20000 total to the bondholders as an incentive to convert the bonds.