Give me correct answer with explanation.. On January 1, 2024, when its $30 par value common stock was selling for $80 per share, Skysong Corp. issued $10,600,000 of 8%convertible debentures due in 20 years. The conversion option allowed the holder of each $1,000 bond to convert the bond into fiveshares of the corporation's common stock. The debentures were issued for $11,448,000. The present value of the bond payments atthe time of issuance was $9,010,000, and the corporation believes the difference between the present value and the amount paid isattributable to the conversion feature. On January 1, 2025, the corporation's $30 par value common stock was split 2 for 1, and theconversion rate for the bonds was adjusted accordingly. On January 1, 2026, when the corporation's $15 par value common stock wasselling for $135 per share, holders of 30% of the convertible debentures exercised their conversion options. The corporation uses thestraight-line method for amortizing any bond discounts or premiums.(a) Prepare the journal entry to record the original issuance of the convertible debentures. (List debit entry before credit entry. Creditaccount titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select "No Entry" for theaccount titles and enter O for the amounts.) (b) Prepare the journal entry to record the exercise of the conversion option, using the book value method. (List all debit entries beforecredit entries. Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select"No Entry" for the account titles and enter O for the amounts.)Account Titles and ExplanationBonds PayablePremium on Bonds PayableDebitCreditCommon StockPaid-in Capital in Excess of Par Common Stock

Journal entry is an art of recording, summarizing and classifying business transactions into…

(b) Prepare the journal 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" for the account titles and enter O for the amounts.)