A bond issue of $50,000 with a carrying value of $49,000 is converted into $10 par value common stock at the rate of fifty shares for each $1,000 bond. The entry to be recorded on the conversion of bonds is: a. Bonds Payable 50,000 Loss on Retirement of Bonds 1,000 Unamortised Bond Discount 1,000 Common Stock 51,000 b. Bonds Payable 50,000 Common Stock 25,000 Additional Paid-In Capital 25,000 c. Bonds Payable 50,000 Common Stock 25,000 Additional Paid-In Capital 24,000 Unamortised Bond Discount 1,000 d. Bonds Payable 49,000 Unamortised Bond Discount 1,000 Common Stock 25,000 Additional Paid-In Capital 25,000
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A bond issue of $50,000 with a carrying value of $49,000 is converted into $10 par value common stock at the rate of fifty shares for each $1,000 bond. The entry to be recorded on the conversion of bonds is:
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a. |
Bonds Payable 50,000 Loss on Retirement of Bonds 1,000 Unamortised Bond Discount 1,000 Common Stock 51,000
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b. |
Bonds Payable 50,000 Common Stock 25,000 Additional Paid-In Capital 25,000
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c. |
Bonds Payable 50,000 Common Stock 25,000 Additional Paid-In Capital 24,000 Unamortised Bond Discount 1,000
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d. |
Bonds Payable 49,000 Unamortised Bond Discount 1,000 Common Stock 25,000 Additional Paid-In Capital 25,000 |
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