PayPow Corp. has outstanding 8,000, $1,000 bonds. Each bond is convertible into 100 shares of $1 par value common stock. The bonds are converted on December 31, 2017 when the unamortized discount on the bonds is $60,000 and the market price of the stock is $30 per share.

The journal entry to record the conversion would require a:

Select one:

Credit to common stock of $24,000,000

Debit to discount on bonds payable of $60,000

Credit to paid in capital of $7,260,000

Credit to discount on bonds payable of $60,000