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Current Attempt in Progress On January 1, 2019, when its $30 par value common stock was selling for $80 per share. Plato Corp, issued $10.000000

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Current Attempt in Progress On January 1, 2019, when its $30 par value common stock was selling for $80 per share. Plato Corp, issued $10.000000 of a, convertible debentures due in 20 years. The conversion option allowed the holder of each $1.000 bonid to cotivert the bond into five shares of the corporation's common stock. The debentures were lssued for $10,800,000. The present value of the bond a avments at the time of issuance was $8,500,000, and the corporation believes the difference between the present value and the amowint puid is attributable to the conversion feature. On January 1,2020, the corporation's $30 par vatue comman stock was split 2 for 1 , and the conversion rate for the bonds was adjusted accordingly. On January 1, 2021, when the corporation's $15 par value common thack was selling for $135 per share, holders of 30% of the convertible debentures exercised their conversion options. The corperation untes the straight-line method for amortizing any bond discounts or premiums. (a) Prepare the entry to record the original issuance of the convertible debentures. (Credit account tities are automotically indented when amount is entered. Do not indent manually. If no entry is required. select "No Entry" for the account tities and enter O for the amounts.) (b) Prepare the entry to record the exercise of the conversion option, using the book value method, (Credit account titles are outomatically indented when amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter O for the amounts.) (b) Prepare the entry to record the exercise of the conversion option, using the book value method, (Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter 0 for the ameunts.)

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