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. b. 7, 200 increase in share premium. c. 4,800 increase in share premium. d. 3, 600 increase in share premium.

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. b. 7, 200 increase in share premium. c. 4,800 increase in share premium. d. 3, 600 increase in share premium.

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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