On July 1, 2020,WhisperingLtd., which follows ASPE,issued1,000convertible, five-year, $1,000 bonds. Each bond is convertible into20common shares at the bondholder's option. On the date of issuance, the bond's conversion rights were valued at $51,000.

On July 1, 2023, the bonds had a carrying value onWhispering's books of $972,000, and the fair market value of the bonds without the convertible option was $980,000.

Assume all the bondholders voluntarily decided to convert their bonds to common shares on July 1, 2023.

Prepare the journal entry to record the conversion.(Credit account titles are automatically indented when the amount is entered.Do not indent manually.)

Account Titles and Explanation Debit Credit

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Assume instead thatWhisperingpaid the bondholders an incentive of $17,000to convert their bonds to common shares, and that all the bondholders agreed to convert their bonds to common shares on July 1, 2023.

Prepare the journal entry to record the conversion.

Account Titles and Explanation Debit Credit

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Choose from Lists of Accounts:

Accounts Payable

Bonds Payable

Cash

Common Shares

Compensation Expense

Contributed Surplus - Conversion Rights

Contributed Surplus - Conversion Rights Expired

Contributed Surplus - Expired Stock Options

Contributed Surplus - Stock Options

Contributed Surplus - Stock Warrants

Cost of Goods Sold

Deficit

Derivatives-Deposits

Derivatives - Financial Assets/Liabilities

Equipment

Equity - Fixed-for-fixed Derivative

Fair Value - NI Investments

Fair Value - OCI Investments

Future Income Tax Liability

Gain or Loss on Derivatives

Interest Expense

Interest Income

Interest Payable

Interest Receivable

Inventory

Liability under Share - Appreciation Rights Plans

Loss on Redemption of Bonds

Loss on Retirement of Bonds

No Entry

Notes Payable

Notes Receivable

Preferred Shares

Raw Materials

Retained Earnings

Sales Revenue

Supplies

Unrealized Gain or Loss - OCI