Problem #5: Bond Conversion Journal Entry

Hotwire Corporation has the following bond outstanding

• 3,500, $1,000 bonds, each convertible into 50 shares of $10 par value common stock.
• The bonds are converted on December 31, 2019,
• The unamortized discount is $75,000 and the market price of the stock is $23 per share.

Required: record the Journal entry at conversion of the bonds (use the grid):