G1 Corp. issued $30 million subordinated convertible debentures on January 1, 2017 at face value. The debentures pay 7% interest annually and are convertible into 30 common shares for each $1,000 of the bonds face value. At maturity, December 31, 2018, G1 Corp. has the option of issuing common shares to redeem the bonds instead of paying cash.

Required:

Prepare all the journal entries associated with the bond for the year ended December 31, 2018.