) For each of the unrelated transactions described below, Present the entries required to record the bond transactions.

1- On August 1, 2019, Lane Corporation called its 10% convertible bonds for conversion. The $ 8,000,000 par bonds were converted into 320,000 shares of $20 par common stock. On August 1, there was $ 700,000 of unamortized premium applicable to the bonds. The fair market value of the common stock was $ 20 per share. Ignore all interest payments.

2- Ruba, Inc. decides to issue convertible bonds instead of common stock. The company issues 10% convertible bonds, par $3,000,000, at 97. The investment banker indicates that if the bonds had not been convertible, they would have sold at 94.