29 $1000 bonds with a carrying value of $38600 are converted into 4000 shares of $5 par value common stock. The common stock had a market value of $9 per share on the date of conversion. The entry to record the conversion is Bonds Payable 29000 Premium on Bonds Payable 9600 Common Stock 29000 Paid-in Capital in Excess of 9600 Par Bonds Payable 38600 Common Stock 36000 Paid-in Capital in Excess of 2600 Par Bonds Payable 29000 Premium on Bonds Payable 9600 Common Stock 20000 Paid-in Capital in Excess of 18600 Par Bonds Payable 38600 Common Stock 20000 Paid-in Capital in Excess of 18600 Par
29 $1000 bonds with a carrying value of $38600 are converted into 4000 shares of $5 par value common stock. The common stock had a market value of $9 per share on the date of conversion. The entry to record the conversion is Bonds Payable 29000 Premium on Bonds Payable 9600 Common Stock 29000 Paid-in Capital in Excess of 9600 Par Bonds Payable 38600 Common Stock 36000 Paid-in Capital in Excess of 2600 Par Bonds Payable 29000 Premium on Bonds Payable 9600 Common Stock 20000 Paid-in Capital in Excess of 18600 Par Bonds Payable 38600 Common Stock 20000 Paid-in Capital in Excess of 18600 Par
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Question-based on, "Entry to record conversion".
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Transcribed Image Text:29 $1000 bonds with a carrying value of $38600 are converted into 4000 shares of $5 par value common stock. The common stock
had a market value of $9 per share on the date of conversion. The entry to record the conversion is
Bonds Payable
29000
Premium on Bonds Payable
9600
Common Stock
29000
Paid-in Capital in Excess of
9600
Par
Bonds Payable
38600
Common Stock
36000
Paid-in Capital in Excess of
2600
Par
Bonds Payable
29000
Premium on Bonds Payable
9600
Common Stock
20000
Paid-in Capital in Excess of
18600
Par
Bonds Payable
38600
Common Stock
20000
Paid-in Capital in Excess of
18600
Par
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