Retiring and converting bonds payable [10-15 min] Superpower Industries reported the fo...

Retiring and converting bonds payable [10-15 min]

Superpower Industries reported the following at September 30:

Requirements

1. Journalize retirement of half of the bonds on October 1 at the call price of 104.

2. Journalize conversion of the remainder of the bonds into 19,000 shares of Superpower Industries $1 par common stock on October 1. What would cause the bondholders to convert their bonds into stock?