Stonewall Corporation issued $12,000 of 5%, 10-year convertible bonds. Each $1,000 bond is convertible to 10 shares of common stock (par $50) of Stonewall Corporation. The bonds were sold at 105 on January 1. a. Provide the entry for Stonewall Corporation on January 1 for the bond issuance.DateJan. 1Account NameDateDec. 31To record bond issuance.Account NameDebitTo record bond conversion.OOO000b. Provide entries for Stonewall Corporation assuming that the conversion privilege is subsequently exercised immediately afterthe end of the third year. Assume that at the date of conversion, 30% of any premium or discount has been amortized and thecommon stock was selling at $125 per share. Use the book value method.DebitOOOOCredit0OOO00CreditOOOO000

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Stonewall Corporation issued $12,000 of 5%, 10-year convertible bonds. Each $1,000 bond is convertible to 10 shares of common stock (par $50) of Stonewall Corporation. The bonds were sold at 105 on January 1.

Stonewall Corporation issued $12,000 of 5%, 10-year convertible bonds. Each $1,000 bond is convertible to 10 shares of common stock (par $50) of Stonewall Corporation. The bonds were sold at 105 on January 1.

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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