On January 1, 2023, mike Corp., issues $8,000,000 of 6% bonds. Proceeds from the issuance were $7,950,000. Interest is payable every July 1 and January 1, and each $1,000 bond is convertible into 6 shares of mike's $9.00 per share par value common stock. The bonds mature on January 1, 2037, and mike amortizes bond discounts and premiums on a straight line basis.

On January 1, 2026, immediately after interest is paid, 50% of the bonds are converted into common stock. The entry to record this will include a credit to Paid-in Capital in Excess of Par - Common of