On June 30, 2020, an interest payment date, $1030000 of Sarasota Co. bonds were converted into 26100 shares of Sarasota Co. common stock each having a par value of $5 and a market value of $56. There is $352700 unamortized discount on the bonds. Using the book value method, Sarasota would record O no change in paid-in capital in excess of par. O a $140420 increase in paid-in capital in excess of par. a $546800 increase in paid-in capital in excess of par. O a $352700 increase in paid-in capital in excess of par.

On June 30, 2020, an interest payment date, $1030000 of Sarasota Co. bonds were converted into 26100 shares of Sarasota Co. common stock each having a par value of $5 and a market value of $56. There is $352700 unamortized discount on the bonds. Using the book value method, Sarasota would record O no change in paid-in capital in excess of par. O a $140420 increase in paid-in capital in excess of par. a $546800 increase in paid-in capital in excess of par. O a $352700 increase in paid-in capital in excess of par.

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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