Cruise, Inc. has $$480,000$ convertible bonds outstanding on January $1.$ The bonds were

issued at par value. The bonds are to be converted to the corporation's common stock. The bondholders

will receive $130,000$ shares no par common stock at the time of conversion.

Prepare the journal entry Cruise, Inc. will record in its accounting records on the January $1$ conversion date

$($Hint: use the Account List $-$ click to pop open to help you with your journal entries$).$