A company issues convertible bonds with face value of $5,300,000 and receives proceeds of $6,600,000. Each $1,000 bond can be converted, at the option of the holder, into 120 common shares. The underwriter estimated the market value of the bonds alone, excluding the conversion rights, to be approximately $6,100,000. Requirement Record the journal entry for the issuance of these bonds. (Record debits first, then credits. Explanations are not required.) A company issues convertible bonds with face value of $5,300,000 and receives proceeds of $6,600,000. Each $1,000 bond can be converted, at the option of the holder, into 120 common shares. The underwriter estimated the market value of the bonds alone, excluding the conversion rights, to be approximately $6,100,000. Requirement Record the journal entry for the issuance of these bonds. (Record debits first, then credits. Explanations are not required.)