Pasteis Ltd. reported the following balances at September 30, 2020:

Long-term liabilities
Convertible bonds payable, 9%, due September 30, 2026 .................... $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, 2020, at the call price of 103.00.

2. Record the conversion of one-fourth (of the original $1,600,000) of the bonds into 20,000 common shares of Pasteis Ltd. on October 1, 2020.