Edo Company had $1 million of $1,000 bonds outstanding (carrying value: $950,000). Each bond is convertible into five shares of $0.10 par value common stock. Prepare the journal entry necessary to record the redemption of the convertible bonds. Then prepare the alternative journal entry for the same facts as before, but Edo had encouraged the bondholders to convert the debt by paying them $20 in addition to the five shares for converting.