On July $1,2019,$ when its $$1$ par value common stock was selling for $$66$ per share, Sheridan Corp. issued $$24,700,000$ of $6\%$ convertible debentures due in $10$ years. The conversion option allowed the holder of each $$1,000$ bond to convert the bond into $10$ shares of the corporation's common stock. The debentures were issued for $$26,182,000.$ The corporation believes the difference between the par value and the amount paid is attributable to the conversion feature. On January $1,2020,$ the corporation's common stock was split $2$ for $1,$ and the conversion rate for the bonds was adjusted accordingly. On January $1,2021,$ when the corporation's $$0\mathrm{.}50$ par value common stock was selling for $$38$ per share, holders of $9,880$ of the convertible debentures exercised their conversion options. The corporation uses the straight$-$line method for amortizing any bond discounts or premiums.

$($a$)$ Prepare in general journal form 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 $0$ for the amounts.$)$

Account Titles and Explanation

Debit

Credit

$$

$($b$)$ Prepare in general journal form the entry to record the exercise of the conversion option, using the book value method. Show supporting computations in good form. $($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

$$

$$

$$

$$

$$

$$

$$

$$

$$