Blossom Corporation issued $5100000 of 9%, ten-year convertible bonds on July 1, 2024 at 96.1 plus accrued interest. The bonds were dated April 1, 2024 with interest payable April 1 and October 1. Bond discount is amortized semiannually on a straight-line basis. On April 1, 2025, $1100000 of these bonds were converted into 400 shares of $20 par value common stock. Accrued interest was paid in cash at the time of conversion. What portion of the balance in Discount on Bonds Payable on April 1, 2025 relates to the bonds that were converted? $42900 $21450 $39600 $40700
Blossom Corporation issued $5100000 of 9%, ten-year convertible bonds on July 1, 2024 at 96.1 plus accrued interest. The bonds were dated April 1, 2024 with interest payable April 1 and October 1. Bond discount is amortized semiannually on a straight-line basis. On April 1, 2025, $1100000 of these bonds were converted into 400 shares of $20 par value common stock. Accrued interest was paid in cash at the time of conversion. What portion of the balance in Discount on Bonds Payable on April 1, 2025 relates to the bonds that were converted? $42900 $21450 $39600 $40700
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Transcribed Image Text:Blossom Corporation issued $5100000 of 9%, ten-year convertible bonds on July 1, 2024 at 96.1 plus accrued interest. The bonds were dated April 1, 2024 with
interest payable April 1 and October 1. Bond discount is amortized semiannually on a straight-line basis. On April 1, 2025, $1100000 of these bonds were converted
into 400 shares of $20 par value common stock. Accrued interest was paid in cash at the time of conversion. What portion of the balance in Discount on Bonds
Payable on April 1, 2025 relates to the bonds that were converted? $42900 $21450 $39600 $40700
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