MarkyM Corp. has outstanding $2,000,$ $$1,000$ bonds. Each bond is convertible into $10$ shares of $$10$ par value common stock. The bonds are converted on December $31,2017$ when the unamortized discount on the bonds is $$6,000$ and the market price of the stock is $$25$ per share.

The journal entry to record the conversion would require a:

Question $5$Select one:

Debit to discount on bonds payable of $$6,000$

Credit to paid in capital common stock of $$294,000$

Credit to common stock of $$400,000$

Credit to paid in capital common stock of $$1,806,000$

Credit to paid in capital common stock of $$300,000$

Credit to paid in capital common stock for $$1,794,000$