A company borrowed $40,000 cash from the bank and signed a 6-year note at 7 % annual interest. The present value of an annuity factor for 6 years at 7% is 4.7665. The present value of a single sum factor for 6 years at 7 % is 0 .6663. The annual annuity payments equal On January 1, $300,000 of par value bonds with a carrying value of $310,000 is converted to 50,000 shares of $5 par value common stock The entry to record the conversion of the bonds includes all of the following entries except