On January 1, 2020, Amsterdam Corporation issued $5.8 million of 10%, 10-year convertible bonds at 102. The bonds pay interest on June 30 and December 31. Each $1,000 bond is convertible into 40 shares of $1 par common stock. Rotterdam Company purchased 40% of the issue as an investment. On July 1, 2024, Rotterdam converted all of its bonds into common stock of Amsterdam. The market price per share for Slug was $30 at the time of the conversion. Both companies use the straight-line method for amortization. Required: 1. Prepare journal entries for the issuance of the bonds on the issuer and the investor books. 2. Prepare the journal entries for the conversion on the books of the issuer and the investor. Complete this question by entering your answers in the tabs below. Required 1 Required 2 Prepare the journal entries for the conversion on the books of the issuer and the investor. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field. Enter your answers in whole dollars.) View transaction list Journal entry worksheet 1 2 > Record the entry for the conversion by Slug. Note: Enter debits before credits. Transaction General Journal Debit Credit 1 On January 1, 2020, Amsterdam Corporation issued $5.8 million of 10%, 10-year convertible bonds at 102. The bonds pay interest on June 30 and December 31. Each $1,000 bond is convertible into 40 shares of $1 par common stock. Rotterdam Company purchased 40% of the issue as an investment. On July 1, 2024, Rotterdam converted all of its bonds into common stock of Amsterdam. The market price per share for Slug was $30 at the time of the conversion. Both companies use the straight-line method for amortization. Required: 1. Prepare journal entries for the issuance of the bonds on the issuer and the investor books. 2. Prepare the journal entries for the conversion on the books of the issuer and the investor. Complete this question by entering your answers in the tabs below. Required 1 Required 2 Prepare the journal entries for the conversion on the books of the issuer and the investor. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field. Enter your answers in whole dollars.) View transaction list Journal entry worksheet Record the exercise of conversion by Fuzz. Note: Enter debits before credits. Transaction General Journal Debit Credit 2