Convertible Bond Entries On January 2, 2016, Lindsay Corporation issued $800,000 of 8% convertible bonds at par. The bonds mature in 10 years and pay interest semiannually on June 30 and December 31. Each $1,000 bond could be converted into 26 shares of the companys $2.50 par value common stock. Alternatively, Lindsay has the right to settle the bonds in cash instead of issuing common stock. Similar bonds without the conversion feature would carry a 10% stated interest rate.

Required:

Prepare the journal entry to record the issuance of the bonds.