On July 1, 2024, when its $1 par value common stock was selling for $66 per share, Culver Corp. issued $24,800,000 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 $26,288,000. The corporation believes the difference between the par value and the amount paid is attributable to the conversion feature. On January 1, 2025, the corporation's common stock was split 2 for 1, and the conversion rate for the bonds was adjusted accordingly. On January 1, 2026, when the corporation's $0.50 par value common stock was selling for $38 per share, holders of 9,920 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 O for the amounts. List all debit entries before credit entries.) Account Titles and Explanation Cash Debit 26288000 Credit Bonds Payable Premium on Bonds Payable 24800000 1488000 (b) Prepare in general journal form 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. List all debit entries before credit entries) (b) Prepare in general journal form 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. List all debit entries before credit entries.) Account Titles and Explanation Bonds Payable Premium on Bonds Payable Debit 24800000 1264800 Credit Common Stock Paid in Capital in Excess of Par-Common Stock 248000 25816800