Agnes Corp. has 3,000 $1,000 bonds outstanding. Each bond is convertible into 15 shares of $5 par value common stock. The bonds are converted into common stock on December 31, 2024. On this date, the market value of the common stock was $20 per share. At this time the unamortized discount on the bonds was $259,100. The company records the conversion of the bonds using the book value approach.

On December 31, 2024, the company's journal entry to record the conversion of the bonds includes

Question 24 options:

a)	a credit to bonds payable for $3,000,000.

b)	a credit to Paid-in Capital in Excess of Par - Common Stock for $2,775,000.

c)	a debit to discount on bonds payable for $259,100

d)	a credit to Paid-in Capital in Excess of Par - Common Stock for $2,515,900.