On December 31, 2019, the balance sheet of Red Stout Corporation reported bonds

outstanding with a face value of $2,000,000 and a related unamortized premium

of $60,000. Interest is payable semiannually on January 1 and July 1.

A) Prepare an entry in journal form without explanations to record the

retirement of bonds with a face value of $1,200,000 on January 1, 2020,

assuming the bonds were redeemed at a call price of 104.

B) Prepare an entry in journal

form without explanation on January 1, 2020, to record the conversion of bonds

with a face value of $800,000 into common stock. Each $1,000 bond is

convertible into 30 shares of $20 par value common stock.