Seville Products Ltd. reported the following at September 30, 2014:

Long-term liabilities

Convertible bonds payable, 9%, due September 30, 2020.......$1,600,000

Discount on bonds payable................................................60,000.......$1,540,000

Required

1. Record the retirement of one-half of the bonds on October 1, 2014, at the call price of 102.00.

2. Record the conversion of one-fourth (of the original $1,600,000) of the bonds into 10,000 common shares of Seville Products Ltd. on October 1, 2014.