1 E16-4 (Conversion of Bonds) On January 1, 2013, when its $30 par value common stock was selling fo $80per share, Plato Corp. issued $10,000,000 of 8% convertible debentures due in 20 years. The conversi option allowed the holder of each $1,000 bond to convert the bond into five shares of the corporatiom common stock. The debentures were issued for $10,800,000. The present value of the bond payment time of issuance was $8,500,000, and the corporation believes the difference between the present value and the amount paid is attributable to the conversion feature. On January 1, 2014, the corporation's $30 ma value common stock was split 2 for 1, and the conversion rate for the bonds was adjusted accordingly. January 1, 2015, when the corporation's $15 par value common stock was selling for $135 per share, holders of 30% of the convertible debentures exercised their conversion options. The corporation uses the straig line method for amortizing any bond discounts or premiums line method for amortizing any bond disecounts or premiums Instructions (a) Prepare in general journal form the entry to record the original issuance of the convertible debentures