12. Lawson Equipment Company issued 375 eight-year, 10% convertible bonds for $403,500. Each bond had a par value of $1,000. Each $1,000 bond converts into nine shares of $1 par value common stock at the option of the bondholder beginning two years after the date of issue. The market price of the common stock on the purchase commitment date was equal to $110 per share and the market rate of interest was 10% at issuance. Prepare the journal entry to record the bond conversion, assuming the balance of the unamortized premium on the date of conversion is $19, 100. (Record debits first, then credits. Exclude explanations from any journal entries.) Account Date of Conversion