Ch16: On July 1, 2019, an interest payment date, 60, 000 of Parks Co, bonds were converted into 1, 200 ordinary shares of Parks Co. each having a par value of 45 and a fair value of 54. There is 2, 400 unamortized discount on the bonds. Parks would record a. no change in share premium.O b. a 7, 200 increase in share premium. c. a 4,800 increase in share premium. d. a 3,600 increase in share premium.
Ch16: On July 1, 2019, an interest payment date, 60, 000 of Parks Co, bonds were converted into 1, 200 ordinary shares of Parks Co. each having a par value of 45 and a fair value of 54. There is 2, 400 unamortized discount on the bonds. Parks would record a. no change in share premium.O b. a 7, 200 increase in share premium. c. a 4,800 increase in share premium. d. a 3,600 increase in share premium.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
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Transcribed Image Text:Ch16: On July 1, 2019, an interest
payment date, 60, 000 of Parks Co,
bonds were converted into 1, 200
ordinary shares of Parks Co. each
having a par value of 45 and a fair
value of 54. There is 2,400
unamortized discount on the bonds.
Parks would record a. no change in
share premium.O b. a 7, 200 increase
in share premium. c. a 4, 800
increase in share premium. d. a
3,600 increase in share premium.
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