Regal Inc, issued $307,000 of 3 percent, 10-year bonds on July 1, 2019. Interest payment dates are January 2 and July 1. The issue price was $284,800. The bonds are convertible into common shares at the rate of 15 common shares for each $1,000 bond. The market price of Regal Inc. common shares has risen steadily over the last two years, and on July 1, 2021, half of the bonds are converted into common shares after the interest payment entry has been recorded.

Required

1.	Compute the balance in the premium or discount account on the date of conversion. Regal Inc. uses the straight-line method of amortization. The balance in Premium or discount is $_____. the amount in this account is a ____ (Discount Or Premium)
2.	Prepare the entry to convert half of the bonds into common shares.