Current Attempt in Progress On September 1, 2020, Concord Company sold at 104 (plus accrued interest) 3.480 of its 9%, 10 year $1.000 face value. nonconvertible bonds with detachable stock warrants. Each bond carried two detachable warrants. Each warrant was for one share of common stock at a specified option price of $17 per share Shortly after issuance, the warrants were quoted on the market for $2 each. No fair value can be determined for the Concord Company bonds. Interest is payable on December 1 and June 1 Prepare in general journal format the entry to record the issuance of the bonds. (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 for the amounts.) Account Titles and Explanation Debit Credit On July 1, 2019, when its $1 par value common stock was selling for $66 per share, Teal Corp. issued $26,400,000 of 6% convertible debentures due in 10 years. The conversion option allowed the holder of each $1,000 bond to convert the bond into 10 shares of the corporation's common stock. The debentures were issued for $27,984,000. The corporation believes the difference between the par value and the amount paid is attributable to the conversion feature. On January 1, 2020, the corporation's common stock was split 2 for 1, and the conversion rate for the bonds was adjusted accordingly. On January 1, 2021, when the corporation's $0.50 par value common stock was selling for $38 per share, holders of 10,560 of the convertible debentures exercised their conversion options. The corporation uses the straight-line method for amortizing any bond discounts or premiums. (a) Prepare in general journal form the entry to record the original issuance of the convertible debentures. (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 for the amounts) Account Titles and Explanation Debit Credit Cash 27984000 Premium on Bonds Payable 1584000 Bonds Payable 26400000 (b) Prepare in general journal form the entry to record the exercise of the conversion option, using the book value method. Show supporting computations in good form. (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 for the amounts.)