On January 1, 2011 the stockholders of Jason Company authorized issuance of a ten year, 12% convertible bonds with a face value of $800,000. Interest payable semiannually on June 30th and December 31. Jason useds the straight-line amortization method. Each $1000 bond is convertible into 85 shares of $5 par value common stock at the option of the bondholder. Transactions involving the bonds during 2011 and 2012 were as follows:

2011:
Jan 1: issued all of the bonds at 105.
Jan 30: Paid the semiannual intereste and amortized the premium.
Dec. 31: Paid the semi annual interest and amortized the premium.

2012:
Jan. 1: Holders of bonds with a face value of $700,000 converted their bonds into shares of common stock.
June 30: Paid the semiannual interest and amortized the premium on the remaining bongs.
July 1: Hawk Company purchased the remaining bonds on the open market at 96 and retired the bonds.

Prepare journal entries to record the transactions involving bonds during 2011 and 2012.