On January 1, 2018, HTL Manufacturers issued $100 million of 8% convertible debentures due 2038 at 103. The bonds are convertible at the option of the holder into $1 par value common stock at a conversion ratio of 40 shares per $1, 000 bond. HTL recently issued convertible, 20-year, 8% debentures at 98. Subsequent to the issue, one half of the convertible bonds issued by HTL Manufacturers are converted at a time when the remaining unamortized premium is $2 million. Required: Prepare the journal entries to record the debt issue and conversion