Sarasota Inc. issued $$3,800,000$ of $10\%,10-$year convertible bonds on June $1,2020,$ at $98$ plus accrued interest. The bonds were dated April $1,2020,$ with interest payable April $1$ and October $1.$ Bond discount is amortized semiannually on a straight$-$line basis.

On April $1,2021,$ $$1,425,000$ of these bonds were converted into $26,000$ shares of $$20$ par value common stock. Accrued interest was paid in cash at the time of conversion.