Crane Corporation sold $170$ convertible, $10-$year bonds at par for $$170,000.$ Each bond pays $4\%$ annual interest and each bond can be

converted to ten common shares at the bondholder's request. When the bonds were issued, the common shares were trading for $$13$

per share. The market rate of interest for similar bonds without conversion rights was $6\%.$

Click here to view the factor table PRESENT VALUE OF $1.$

Click here to view the factor table PRESENT VALUE OF AN ANNUITY OF $1.$

Prepare the journal entry to record the issuance of the bonds. $($Round present value factor calculations to $5$ decimal places, e$.$g$.1\mathrm{.}25124$

and the final answers to $0$ decimal places e$.$g$.58,971.$ Credit account titles are automatically indented when the amount is entered. Do not

indent manually. List all debit entries before credit entries. If no entry is required, select $"$No Entry" for the account titles and enter $0$ for the

amounts.$)$

Account Titles

Debit

Credit

Bonds Payable

Contributed Surplus $-$ Conversion Rights