I cannot figure out how to work through this.

To me, the issuance should be:

CR

Cash 5,200,000

DR

Premium 200,000

Bond 5,000,000

1) Bainville Co. has $5,000,000 of 10% convertible bonds outstanding. Each $1,000 bond is convertible into 20 shares of $25 par value common stock. The bonds pay interest on January 31 and July 31. On July 31, 2020, the holders of $1,250,000 bonds exercised the conversion privilege. On that date the market priee of the bonds was 105 and the market price of the common steek was $36. The total unamortized bond premium at the date of conversion was $320,000. What journal entry Bainville should make as a result of this conversion