Oriole Company has bonds payable outstanding in the amount of $$590,000,$ and the Premium on Bonds Payable account has a balance

of $$6,800.$ Each $$1,000$ bond is convertible into $20$ shares of preferred stock of par value of $$50$ per share. All bonds are converted into

preferred stock.

Assuming that the book value method was used, what entry would be made? $($List all debit entries before credit entries. 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