Nolan Corporation has outstanding convertible bonds with a face value of $15,000 and a current book value if $17,000. Each $1,000 bond is covetable into 25 shares if 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.

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