The Tramot Corporation has $2,000,000 of 6 percent bonds outstanding. There is $40,000 of unamortized discount remaining on the bonds after the March 1, 20×6, semiannual interest payment. The bonds are convertible at the rate of 20 shares of $10 par value common stock for each $1,000 bond. On March 1, 20×6, bondholders presented $1,200,000 of the bonds for conversion. Prepare the entry to record the conversion of the bonds.

 

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