Question: Lenz Corporation called its 8% convertible bonds for conversion on January 1, 2021. The $8,000,000 par bonds were converted into 320,000 shares of $20 par

Lenz Corporation called its 8% convertible bonds for conversion on January 1, 2021. The $8,000,000 par bonds were converted into 320,000 shares of $20 par common stock. On August 1, there was $800,000 of unamortized premium applicable to the bonds. The fair value of the common stock was $20 per share. At conversion, there was no accrued interest on the bonds. Prepare the journal entry to account for the conversion.

Date	Account	Debit	Credit

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