For each of the unrelated transactions described below, present the entries required to record each transaction.

1.		Buffalo Corp. issued $19,100,000 par value 9% convertible bonds at 97. If the bonds had not been convertible, the companys investment banker estimates they would have been sold at 95.
2.		Carla Company issued $19,100,000 par value 9% bonds at 96. One detachable stock purchase warrant was issued with each $100 par value bond. At the time of issuance, the warrants were selling for $4.
		Suppose Sepracor, Inc. called its convertible debt in 2020. Assume the following related to the transaction. The 10%, $10,900,000 par value bonds were converted into 1,090,000 shares of $1 par value common stock on July 1, 2020. On July 1, there was $57,000 of unamortized discount applicable to the bonds, and the company paid an additional $81,000 to the bondholders to induce conversion of all the bonds. The company records the conversion using the book value method. Exercise 16-04 On January 1, 2019, when its $30 par value common stock was selling for $80 per share, Concord Corp. issued $11,400,000 of 8% convertible debentures due in 20 years. The conversion option allowed the holder of each $1,000 bond to convert the bond into five shares of the corporations common stock. The debentures were issued for $12,312,000. The present value of the bond payments at the time of issuance was $9,690,000, and the corporation believes the difference between the present value and the amount paid is attributable to the conversion feature. On January 1, 2020, the corporations $30 par value common stock was split 2 for 1, and the conversion rate for the bonds was adjusted accordingly. On January 1, 2021, when the corporations $15 par value common stock was selling for $135 per share, holders of 30% of the convertible debentures exercised their conversion options. The corporation uses the straight-line method for amortizing any bond discounts or premiums. (a) Prepare the entry to record the original issuance of the convertible debentures. (b) Prepare the entry to record the exercise of the conversion option, using the book value method.