A company has outstanding 366 $1,000 bonds, each convertible into 28 shares of $12 par value common stock. The bonds are converted on December 31, 2020, when the unamortized premium is $170,000 and the market price of the stock is $30 per share. For the journal entry made for the conversion, how much is Paid-in Capital in Excess of Par – c/s?

A company has outstanding 366 $1,000 bonds, each convertible into 28 shares of $12 par value common stock. The bonds are converted on December 31, 2020, when the unamortized premium is $170,000 and the market price of the stock is $30 per share. For the journal entry made for the conversion, how much is Paid-in Capital in Excess of Par – c/s?

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

Chapter16: Retained Earnings And Earnings Per Share

Section: Chapter Questions

Problem 26E: Tama Companys capital structure consists of common stock and convertible bonds. At the beginning of...

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