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E15-17 Pasteis Ltd

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E15-17 Pasteis Ltd. reported the following balances at September 30, 2020: Long-term liabilities Convertible bonds payable, 9%, due September 30, 2026 Discount on bonds payable $1,600,000 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. 4 Recording early retirement and conversion of bonds payable 2. $385,000 of common shares