Presented below are three independent situations:

1. Ernst Corporation retired \(\$ 120,000\) face value, \(12 \%\) bonds on June 30,1996 , at 102 . The carrying value of the bonds at the redemption date was \(\$ 107,500\). The bonds pay semiannual interest and the interest payment due on June 30, 1996, has been made and recorded.

2. Young, Inc. retired \(\$ 150,000\) face value, \(12.5 \%\) bonds on June 30,1996 , at 98 . The carrying value of the bonds at the redemption date was \(\$ 151,000\). The bonds pay semiannual interest and the interest payment due on June 30,1996 , has been made and recorded.

3. Lybrand Company has \(\$ 80,000,8 \%, 12\)-year convertible bonds outstanding. These bonds were sold at face value and pay semiannual interest on June 30 and December 31 of each year. The bonds are convertible into 30 shares of Jefferson \(\$ 2\) par value common stock for each \(\$ 1,000\) worth of bonds. On December 31, 1996, after the bond interest has been paid, \(\$ 20,000\) face value bonds were converted. The market value of Jefferson common stock was \(\$ 44\) per share on December 31, 1996.

\section*{Instructions}

For each independent situation above, prepare the appropriate journal entry for the redemption or conversion of the bonds.