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On January 1, $391,200 of par value bonds with a carrying value of $424,000 is converted to 65,200 shares of $5 par value common stock.

On January 1, $391,200 of par value bonds with a carrying value of $424,000 is converted to 65,200 shares of $5 par value common stock. The entry to record the conversion of the bonds includes all of the following entries except:

Debit to Bonds Payable $424,000.

Debit to Premium on Bonds Payable $32,800.

Credit to Common Stock $326,000.

Credit to Paid-In Capital in Excess of Par Value, Common Stock $98,000.

Debit to Bonds Payable $391,200.

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