The Sports Corporation previously issued convertible bonds with a maturity value of $5,000,000;the book value of the bonds as of October 1,2015 was $5,250,000.Each $1,000 bond is convertible into 100 shares of $5 par value common stock.On October 1,2015,bonds with a maturity value of $2,000,000 were converted into common stock;the common stock's market value on the conversion date was $12.75 per share.Prepare the journal entry to record the bond conversion given the above facts only.

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The Answer of The Sports Corporation previously issued convertible bonds with a maturity value of $5,000,000;the book value of the bonds as of October 1,2015 was $5,250,000.Each $1,000 bond is convertible into 100 shares of $5 par value common stock.On October 1,2015,bonds with a maturity value of $2,000,000 were converted into common stock;the common stock's market value on the conversion date was $12.75 per share.Prepare the journal entry to record the bond conversion given the above facts only.

The Sports Corporation Previously Issued Convertible Bonds with a Maturity