On January 1, 2019, Larkspur issued 10-year, $300,000 face value, 6% bonds at par. Each $1,000 bond is convertible into 30 shares of Larkspur $2 par value common stock. The company has had 10,000 shares of common stock (and no preferred stock) outstanding throughout its life. None of the bonds have been converted as of the end of 2020. (Ignore all tax effects.)

(c) Assume that 75% of the holders of Larkspur's convertible bonds convert their bonds to stock on June 30, 2021, when Larkspur's stock is trading at $32 per share. Larkspur pays $50 per bond to induce bondholders to convert. Prepare the journal entry to record the conversion. (If no entry is required, select "No entry" for the account titles and enter O for the amounts. Credit account titles are automatically indented when amount is entered. Do not indent manually.) Account Titles and Explanation Debit Credit Date Jun. 30, 2021 Bond Conversion Expense 11,250 Bonds Payable 225,000 Common Stock 13,500 Paid-in Capital in Excess of Par - Common Stock 211,500 Cash 11,250