On December 31, 20X1, Sunset Company issues $2,000,000 face value, 5%, 5-year bonds. Interest is paid semiannually each June 30 & December 31. The bonds sell at a price of 96; Sunset uses the straight-line method of amortizing bond discount/premium.

Record the entry if the bonds were converted for 10,000 shares $100 par common stock on Dec. 31, 20X6 at maturity.