on jan 1 2018, pear and plum issued 2000000 7%, 8 years covertable bonds. the bonds pay interest on jun30 and dec31. bonds are convertible at the option of the holder at the rate of 50 common shares for each 1000 bond, the market rate of interest for dsimiliar without conversion feature is 6% . pears and plums receive 2250000 net proceeds on the sale of the bonds.

the holders of 500000 face value bonds planning a big plum crushin party and decide to excersise their conversion option on jan 1,2022 when the market value of the common share is 55.

required:

A) prepare the journal entry to record the partial conversion of the bond on jan1,2022

bonds payable. ??? $$$$

contributed surplus- conversion option ???? $$$

common share ????? $$$