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Sandhill Corporation sold $180$ convertible, $10-$year bonds at par for $$180,000.$ Each bond pays $5\%$ annual interest and each bond can be converted to ten common shares at the bondholder's request. When the bonds were issued, the common shares were trading for $$12$ per share. The market rate of interest for similar bonds without conversion rights was $7\%.$

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Prepare the journal entry to record the issuance of the bonds. $($Round present value factor calculations to $5$ decimal places, e$.$g$.1\mathrm{.}25124$ and the final answers to $0$ decimal places e$.$g$.58,971.$ Credit account titles are automatically indented when the amount is entered. Do not indent manually. List all debit entries before credit entries. If no entry is required, select $"$No Entry" for the account titles and enter $0$ for the amounts.$)$

Account Titles

Cash

Contributed Surplus $-$ Conversion Rights

Bonds Payable

Debit

Credit

Credit