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Record the conversion using the book value approach.

Record the conversion using the book value approach.

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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Bonita Corporation has outstanding2,200$1,000bonds, each convertible into60shares of $10par value common stock. The bonds are converted on December 31, 2020, when the unamortized discount is $21,500and the market price of the stock is $21 per share. Record the conversion using the book value approach. (Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter O for the amounts.) Account Titles and Explanation Debit Credit
Transcribed Image Text:Bonita Corporation has outstanding2,200$1,000bonds, each convertible into60shares of $10par value common stock. The bonds are converted on December 31, 2020, when the unamortized discount is $21,500and the market price of the stock is $21 per share. Record the conversion using the book value approach. (Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter O for the amounts.) Account Titles and Explanation Debit Credit
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