5 The following events relate to Purple Corporation's issue of convertible debentures: - 0n Januaryr 1, 2015, the Mathers Corporation issued $500,000 of 12% convertible bonds for $460,000. The bonds are due on Januaryr 1, 2025, and interest is paid on Julvr 1 and Januaryr 1. Each $1,000 bond is convertible into 30 shares of common stock with a par value of $1 per share. [in the date of bond issuance, a share of common stock was selling at $24. - 0n Januaryr 2, 201?, 12% convertible bonds with a face value of $300,000 were converted into common stock. The market value of the common stock on the date of conversion was $10 per share. Mathers uses the straightline method to amortize premiums and discounts. Required: a. Prepare the journal entrvto record the issuance ofthe convertible bonds. b. Record the conversion on Januaryr 2, 2012, using the book value method. c. Assuming that anvr gain or loss on conversion is material, how would it be disclosed in the financial statements