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Novak Corporation has outstanding $2,200$ of $$1,000$ bonds, each convertible into $40$ shares of $$10$ par value common stock. The bonds are converted on December $31,2025,$ when the unamortized discount is $$35,100$ and the market price of the stock is $$21$ per share.

Record the conversion using the book value approach. $($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 O for the amounts.$)$

Account Titles and Explanation

Bonds Payable

Discount on Bonds Payable

Common Stock

Paid$-$in Capital in Excess of Par$-$Common Stock

Debit

$2200000$

$$

$$

$$

Credit

$2200000$

$$

$$

$$