On 31 December 2009, the balance sheet of Gamma Corporation reported bonds outstanding with a face value of $2,000,000 and a related un-amortized premium of $60,000. Interest is payable semiannually on January 1 and July 1. Prepare an entry in journal form with explanations to record the retirement of bonds with a face value of $1,200,000 on January 1 2010, assuming that bonds were redeemed at a call price of 104. Prepare an entry in journal form with explanations on January 1, 2010, to record the conversion of bonds with a fave value of $800,000 into common stock. Each $1000 bond is convertible into 30 shares of $20 par value common stock.