Recording Convertible Bonds- Issuer and Investor On January 1, 2008. Slug Corporation issued $6 million of 8%, 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. Fuzz Company purchased 20% of the issue as an investment. On July 1, 2012, Fuzz converted all of its bonds into common stock of Slug. The market price per share for Slug was $32 at the time of the conversion. Both companies use the straight-line method for amortization. Use the book value method to record the conversion of the bonds. You may round all amounts to the nearest $1 if necessary. Prepare the following journal entries by Slug Corporation, as issuer of the convertible bonds: Januyy 1.2008 issuance: June 30. 2008 first interest payment: july 1, 2012 conversion: Prepare the following journal entries to be recorded by Fuzz Company, as an investor, for its 20% ownership of the convertible bonds: june 30,2008 purchase: June 30,2008 first interest payment: July 1, 2012 conversion