Bonds payable (LG 4,6) On January 1, 2011, the stockholders of Jason Company authorized of 10-year, 12% convertible bonds with a face value of $800,000. Interest is payable semiannually on June 30 and December 31. Jason uses the straight-line amortization method. Fach $1,000 bond is convertible into 85 shares of $5 par value common stock at the option of bondholder. Transactions involving the bonds during 2011 and 2012 were as follows: REQUIRED 2011 Jan. Jun. Dec. 31 2012 Jan. Jun. Jul 1 Issued all of the bonds at 105 Paid the semiannual interest and amortized the premium Paid the semiannual interest and amortized the premium. 30 1 Holders of bonds with a face value of $700,000 converted their bonds into shares of common stock 30 Paid the semiannual interest and amortized the premium on the remaining bonds 1 Hawk Company purchased the remaining bonds on the open market at 96 and retired the bonds. Prepare journal entries to record the transactions involving bonds during 201l and 2012