Seville Ltd. reported the following at September 30, 2020:

Required

1. Record retirement of one-half of the bonds on October 1, 2020, at the call price of 104.50.

2. Record conversion of one-fourth (of the original $2,000,000) of the bonds into 14,000 common shares of Seville Ltd. on October 1, 2020.

Long-term liabilities: Convertible bonds payable, 9% due September 30, 2026 $ 2,000,000 75,000 $ Discount on bonds payable 1,925,000