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Accounting
Thirty $1,000 bonds with a carrying value of $39,600 are converted into 4,000 shares of $5 par value common stock. The common stock had a market value of $9 per share on the date of conversion. The entry to record the conversion is Debit Bonds Payable 39,600 Credit Common Stock 20,000 Credit Paid-in Capital in Excess of Par 19,600 Debit Bonds Payable 30,000 Debit Premium on Bonds Payable 9,600 Credit Common Stock 30,000 Credit Paid-in Capital in Excess of Pa 3,600 Debit Bonds Payable 30,000 Debit Premium on Bonds Payable 9,600 Credit Common Stock 20,000 Credit Paid-in Capital in Excess of Par 19,600 O Debit Bonds Payable 39,600 Credit Common Stock 36,000 Credit Paid-in Capital in Excess of Par 3,600

Thirty $1,000 bonds with a carrying value of $39,600 are converted into 4,000 shares of $5 par value common stock. The common stock had a market value of $9 per share on the date of conversion. The entry to record the conversion is Debit Bonds Payable 39,600 Credit Common Stock 20,000 Credit Paid-in Capital in Excess of Par 19,600 Debit Bonds Payable 30,000 Debit Premium on Bonds Payable 9,600 Credit Common Stock 30,000 Credit Paid-in Capital in Excess of Pa 3,600 Debit Bonds Payable 30,000 Debit Premium on Bonds Payable 9,600 Credit Common Stock 20,000 Credit Paid-in Capital in Excess of Par 19,600 O Debit Bonds Payable 39,600 Credit Common Stock 36,000 Credit Paid-in Capital in Excess of Par 3,600

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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Thirty $1,000 bonds with a carrying value of $39,600 are converted into 4,000 shares of $5 par value common stock. The common stock had a market value of $9 per share on the date of conversion. The entry to record the conversion is O Debit Bonds Payable 39,600 Credit Common Stock 20,000 Credit Paid-in Capital in Excess of Par 19,600 O Debit Bonds Payable 30,000 Debit Premium on Bonds Payable 9,600 Credit Common Stock 30,000 Credit Paid-in Capital in Excess of Pak 3,600 O Debit Bonds Payable 30,000 Debit Premium on Bonds Payable 9,600 Credit Common Stock 20,000 Credit Paid-in Capital in Excess of Par 19,600 Debit Bonds Payable 39,600 Credit Common Stock 36,000 Credit Paid-in Capital in Excess of Par 3,600
Transcribed Image Text:Thirty $1,000 bonds with a carrying value of $39,600 are converted into 4,000 shares of $5 par value common stock. The common stock had a market value of $9 per share on the date of conversion. The entry to record the conversion is O Debit Bonds Payable 39,600 Credit Common Stock 20,000 Credit Paid-in Capital in Excess of Par 19,600 O Debit Bonds Payable 30,000 Debit Premium on Bonds Payable 9,600 Credit Common Stock 30,000 Credit Paid-in Capital in Excess of Pak 3,600 O Debit Bonds Payable 30,000 Debit Premium on Bonds Payable 9,600 Credit Common Stock 20,000 Credit Paid-in Capital in Excess of Par 19,600 Debit Bonds Payable 39,600 Credit Common Stock 36,000 Credit Paid-in Capital in Excess of Par 3,600
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