Convertible Bonds: On January 1, 2016, the Mathers Corporation issued $500,000 of 12% convertible bonds for $540,000. The bonds are due on January 1, 2026, and interest is paid on July 1 and January 1. Each $1,000 bond is convertible into 30 shares of common stock with a par value of $1 per share. Prepare the journal entry to record the issuance of the convertible bonds on January 1, 2016