On July 1, 2020, an interest payment date, $200,000 of Pride Co. bonds were converted into 12,000 shares of Pride Co.common stock each having a par value of $18 and a market value of $21. There is $10,000 unamortized premium on the bonds. Using the book value method, Pride would record the unamortized premium as: Debit Premium on Bonds Payable $10,000 O Debit Discount on Bonds Payable - $10,000 O Credit Premium on Bonds Payable $10,000 O Credit Discount on Bonds Payable $10,000

On July 1, 2020, an interest payment date, $200,000 of Pride Co. bonds were converted into 12,000 shares of Pride Co.common stock each having a par value of $18 and a market value of $21. There is $10,000 unamortized premium on the bonds. Using the book value method, Pride would record the unamortized premium as: Debit Premium on Bonds Payable $10,000 O Debit Discount on Bonds Payable - $10,000 O Credit Premium on Bonds Payable $10,000 O Credit Discount on Bonds Payable $10,000

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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