Muskete Corporation has $$600,000,10\%,10-$year convertible bonds that were sold at face value. The bonds are convertible into $20$ shares of Muskete $$10$ par value common stock for each $$1,000$ bond. On December $31,2016,$ after bond interest had been paid, $$300,000$ face value bonds were converted.

Instructions: Prepare the necessary journal entry for the conversion and retirement of the bonds.