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On December 31, 2017, the balance of bonds payable as per the balance sheet amounted to $4,000,000. On January 1, 2018, $1,600,000 of these bonds

  1. On December 31, 2017, the balance of bonds payable as per the balance sheet amounted to $4,000,000. On January 1, 2018, $1,600,000 of these bonds were converted into common stock. The related unamortised bond premium on that date amounted to $200,000. Each bond was convertible into 25 shares of $10 par value common stock.

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