On January 1, 2019, when its $30 par valve common stock wing for 580 per share, Bridgesort Corp, issued $10,700,000 of convertible debertures due in 20 years. The conversion option allowed the holder of each $1.000 hond to come the band into five shares of the corporation common stock. The debentures were lived for $11.556,000. The present value of the bond payments at the time of issuance was $9.005.000, and the corporation believes the difference between the premu when the corporation's 515 per value common stock was seling for 5135 per shareholders of 0 of the convertible debetures wercised their conversion options. The corporation uses the stone method for amortising any bondscounts account thes and enter for the counts.) C) Preoare the entry to record the originalance of the convertible debentures (Credit account titles are automatically indented when amount is stored. Do not indent manually. If no estry is required, select "No try for the Account Titles and Explanation Det Credit (cash Bonds Payable Premium on Bonds Payable (1) Prepare the entry to record the rise of the conversion option in the book value method (Credit account titles are automatically indented when amount is entered. Do not inden manually. If no entry required select Entry for the account titles and enter for the amounts) Actes and Explanation Debit Crede Bonds Payable Primonds Payat Common Stock On January 1, 2019, when its $30 par value common stock was selling for $80 per share, Bridgeport Corp. issued $10,700,000 of 8% convertible debentures due in 20 years. The conversion option allowed the holder of each $1,000 bond to convert the bond into five shares of the corporation's common stock. The debentures were issued for $11,556,000. The present value of the bond payments at the time of issuance was $9,095,000, and the corporation believes the difference between the present value and the amount paid is attributable to the conversion feature. On January 1, 2020, the corporation's $30 par value common stock was split 2 for 1, and the conversion rate for the bonds was adjusted accordingly. On January 1, 2021, when the corporation's $15 par value common stock was selling for $135 per share, holders of 30% of the convertible debentures exercised their conversion options. The corporation uses the straight-line method for amortizing any bond discounts or premiums. (a) Prepare the entry to record the original issuance of the convertible debentures. (Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter o for the amounts.) Account Titles and Explanation Debit Credit cash 11556000 Bonds Payable 10700000 Premium on Bonds Pay 856000 (b) Prepare the entry to record the exercise of the conversion option, using the book value method. (Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter o for the amounts.) Account Titles and Explanation Debit Credit Bonds Payable 3210000 Premium on Bonds Payable 243960 (b) Prepare the entry to record the exercise of the conversion option, using the book value method. (Credit indented when amount is entered. Do not indent manually. If no entry is required, select "No Ent the amounts.) Account Titles and Explanation Debit Credit