Exercise 14-21 Conversion of bonds payable LO7 Computalog Inc. showed the following on its December 31, 2020, balance sheet: Bonds payable, convertible...... Less: Unamortized discount...... $4,000,000 14.400 $3,985,600 alize the conversion on Januar Required 1. Assuming the bonds are convertible into 400,000 common shares, journalize the con 2021, when the market value per common share was $10.25. 2. How will the conversion of bonds into common shares affect the elements of the balan liabilities, equity)? ents of the balance sheet