40 40 A company issues a $1,000 bond that is convertible into 100 shares of common stock with a par value of $1. At conversion, the Accumulated Discount on Bonds Payable is $100. What information should be included in the journal entry for the conversion? Debit Discount on Bonds Payable for $100 Credit Common Stock for $1,000 Credit Paid-in Capital in Excess of Par-Common Stock for $100 Debit Bonds Payable for $1,000

40 40 A company issues a $1,000 bond that is convertible into 100 shares of common stock with a par value of $1. At conversion, the Accumulated Discount on Bonds Payable is $100. What information should be included in the journal entry for the conversion? Debit Discount on Bonds Payable for $100 Credit Common Stock for $1,000 Credit Paid-in Capital in Excess of Par-Common Stock for $100 Debit Bonds Payable for $1,000

Intermediate Accounting: Reporting And Analysis

3rd Edition

ISBN:9781337788281

Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Chapter14: Financing Liabilities: Bonds And Long-term Notes Payable

Section: Chapter Questions

Problem 21E: On July 2, 2018, McGraw Corporation issued 500,000 of convertible bonds. Each 1,000 bond could be...

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