On January 1, 2017, Matrix, Inc. issued an 8%, 5 year convertible bond in the face amount of $1,000,000. The bonds were issued at a price of 95, and pay interest semi-annually on June 30 and December 31 of each year. Each $1,000 bond is convertible into the companys 20 shares of the companys $12 par value common stock. On January 1, 2020, 30% of the bonds were converted to common stock. Matrix uses the book value method to record bond conversions.

REQUIRED:

Prepare the journal entry of January 1, 2020 to record the conversion of the bonds.