Computalog Inc. showed the following on its December 31, 2014,

Computalog Inc. showed the following on its December 31, 2014, balance sheet:

Computalog Inc. showed the following on its December 31, 2014,

Required
1. Assuming the bonds are convertible into 400,000 common shares, journalize the conversion on January 1, 2015, when the market value per common share was $10.25.
2. How will the conversion of bonds into common shares affect the elements of the balance sheet (assets, liabilities,equity)?

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