Problem Five (8 points)

Anderson, Inc. issued 1,000, $1,000 bonds at 104 several years ago. Each bond is convertible into 3 shares of Anderson common stock. Each share of common stock has a par value of $5. On July 1, 2023, all of the bonds are converted into common stock at a time when the unamortized bond premium is $15,000.

Required:

Please prepare the accounting entry to record the conversion of the bonds into common stock.