On January 1, 2024, when its $30 par value common stock was sellingfor $80 per share, Shefeld Corp. issued $11,700,000 of 8% convertible debentures due in 20 years. The conversion option allowed the holder of each $1,000 bond to convert the bond into ve shares otthe corporation's common stock. The debentures were issued For $12,636,000. The present value otthe bond payments at the time of issuance was $9,945,000, and the corporation believes the difference between the present value and the amount paid is attributable to the conversion feature. On January 1, 2025, the corporation's $30 par value common stockwas split 2 for 1, and the conversion rate forthe bonds was adjusted accordingly. On January 1. 2026, when the corporation's $15 par value common stock was selling for $135 per shareholders of 30% ofthe convertible debentures exercised their conversion options. The corporation uses the straight-line method for amortizing any bond discounts or premiums. (3} Prepare the journal entryto record the original issuance of the convertible debentures. (List debit entry before credit entry. Credit account titles are automatically indented when amount is entered. Do not indent annually: if no entry is required, select \"No Entry\" for the account titles and enter 0 for the amounts l Account Ties and Explanation Debit Credit {b} Prepare thejournal entry to record the exercise of the conversion option, using the book value method. [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"I for the account titles and enter 0 for the amounts.) Account Ties and Explanation Debit Credit