On January $2,2014,$ Picard Enterprises issued $$2,400,000$ of $8$ percent, $15-$year

semiannual coupon bonds to yield $7\mathrm{.}5$ percent. Each bond is convertible into $40$

shares of $$15$ par common stock, which was trading at $$20$ per share on the date of

the bond issue. The bonds were issued at $106.$

On January $3,2019,$ all of the bonds were converted into common stock. The market

price of the stock was $$28$ per share on the date of conversion. The issue premium is

amortized using the straight$-$line method.

$(1)$ Provide the journal entry to record issuance of the bonds.

$(2)$ Provide the journal entry to record the conversion of the bonds assuming Picard

considers the conversion to be a significant culminating transaction.