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On June 30, 2024, Blair Industries had outstanding $86 million of 6% convertible bonds that mature on June 30, 2025. Interest is payable each year on June 30 and December 31. The bonds are convertible into 7 million shares of $10 par common stock. On June 30, 2024, the unamortized balance in the discount on bonds payable account was $4 million. On June 30, 2024, half the bonds were converted when Blair's common stock had a market price of $33 per share. When recording the conversion, Blair should credit paid-in capital-excess of par:

On June 30, 2024, Blair Industries had outstanding $86 million of 6% convertible bonds that mature on June 30, 2025. Interest is payable each year on June 30 and December 31. The bonds are convertible into 7 million shares of $10 par common stock. On June 30, 2024, the unamortized balance in the discount on bonds payable account was $4 million. On June 30, 2024, half the bonds were converted when Blair's common stock had a market price of $33 per share. When recording the conversion, Blair should credit paid-in capital-excess of par:

FINANCIAL ACCOUNTING
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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On June 30, 2024, Blair Industries had outstanding $86 million of 6% convertible bonds that mature on June 30, 2025. Interest is payable each year on June 30 and December 31. The bonds are convertible into 7 million shares of $10 par common stock. On June 30, 2024, the unamortized balance in the discount on bonds payable account was $4 million. On June 30, 2024, half the bonds were converted when Blair's common stock had a market price of $33 per share. When recording the conversion, Blair should credit paid-in capital-excess of par:
Transcribed Image Text:On June 30, 2024, Blair Industries had outstanding $86 million of 6% convertible bonds that mature on June 30, 2025. Interest is payable each year on June 30 and December 31. The bonds are convertible into 7 million shares of $10 par common stock. On June 30, 2024, the unamortized balance in the discount on bonds payable account was $4 million. On June 30, 2024, half the bonds were converted when Blair's common stock had a market price of $33 per share. When recording the conversion, Blair should credit paid-in capital-excess of par:
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