Nolan Corporation has outstanding convertible bonds with a face value of $$15,000$ and a current book value of $$17,500.$ Each $$1,000$ bond is convertible into $25$ shares of common stock $($par value $$5$ per share$).$ All the bonds are converted into common stock on June $1$ when the market value of Nolan$$s common stock is $$50$ per share.

Required:

Using the book value method, prepare the journal entry for Nolan to record the conversion.