On July 1, 2020, an interest payment date, $200,000 of Pride Co. bonds were converted into 12,000 shares of Pride Co.common stock each having a par value of $18 and a market value of $21. There is $10,000 unamortized premium on the bonds. Using the book value method, Pride would record the unamortized premium as: Debit Premium on Bonds Payable $10,000 O Debit Discount on Bonds Payable - $10,000 O Credit Premium on Bonds Payable $10,000 O Credit Discount on Bonds Payable $10,000
On July 1, 2020, an interest payment date, $200,000 of Pride Co. bonds were converted into 12,000 shares of Pride Co.common stock each having a par value of $18 and a market value of $21. There is $10,000 unamortized premium on the bonds. Using the book value method, Pride would record the unamortized premium as: Debit Premium on Bonds Payable $10,000 O Debit Discount on Bonds Payable - $10,000 O Credit Premium on Bonds Payable $10,000 O Credit Discount on Bonds Payable $10,000
Chapter13: Long-term Liabilities
Section: Chapter Questions
Problem 4EA: On January 1, 2018, Wawatosa Inc. issued 5-year bonds with a face value of $200,000 and a stated...
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