Maple Corp. issued $100,000 of 8%, 10-year convertible bonds. Each $1,000 bond is convertible into 2 shares of common stock ($1 par value per share) of Maple Corp. The bonds were sold at 97 on January 1, 2020.

Assume that the conversion feature for 50% of the bonds is exercised on December 31, 2020, after Maple Corp. made payments of $10,000 to shareholders to induce conversion. Assume that any discount or premium has been amortized through the date of conversion using the straight-line interest method. The common stock is selling at $80 per share on December 31, 2020.

Please prepare journal entries for the following transactions:

1. The issuance of the convertible bonds on January 1 , 2020,

2. The conversion of 50% of the bonds to common stock on December 31, 2020.