Bandana Corp. has convertible bonds with a par value of $200,000 and an unamortized discount of $7,000. The bonds can be converted into 2,000 shares of Bandana's common stock that has a $50 par value. Prepare the journal entry to record the conversion.

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The Answer of Bandana Corp. has convertible bonds with a par value of $200,000 and an unamortized discount of $7,000. The bonds can be converted into 2,000 shares of Bandana's common stock that has a $50 par value. Prepare the journal entry to record the conversion.