On March 1, 2019, holders of Ryder Corporation 10% convertible bonds converted the

bonds into common stock of Ryder. The $9,000,000 par bonds were converted into 320,000

shares of $20 par common stock. On March 1, there was $900,000 of unamortized premium

applicable to the bonds. The fair value of the common stock was $27.50 per share. There

was no interest due on the bonds.

Required:

Prepare the journal entry on Ryder's books for the March 1, 2019 bond

conversion.