Part b. 15 points On January 1, 2018, the CFO of Packard, Inc. was reviewing for one last time, the idea of issuing convertible bonds that would mature in 10 years on January 1, 2028. After a great deal of thought during recent months, it was decided that the bonds should be issued instead of raising additional cash from issuing common stock. Therefore, the company issued $4,000,000 of convertible bonds at 97 on January 1, 2018. The bonds had a stated interest rate of 10% with a maturity date of January 1, 2028. Interest is payable on January 19 and July 19 each year. Discount is amortized using straight-line amortization. Although the CFO of Packard, Inc. thought issuing the bonds instead issuing of common stock seemed like a good idea at first, every time an interest payment check was prepared and sent out, the original idea continued to lose its appeal. Exactly 2 years later on January 1, 2020, after paying the interest expense due on that day, all of the bonds were converted into the company's $50 par value common stock that was currently selling at $63.35 per share. The conversion clause of the bonds stated that for every $1,000 of bonds being converted, 18 shares of $50 par value common stock would be issued. Instructions 1. Prepare the journal entry on January 1, 2020 to record the payment of semi-annual interest. 2. Prepare the journal entry on January 1, 2020 to record the conversion of bonds into common stock