Stonewall Corporation issued $70,000 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, 2020. Provide the entry for Stonewall Corporation on January 1, 2020, to record the issuance of the bonds. Note: List multiple debits or credits (when applicable) in alphabetical order.
Stonewall Corporation issued $70,000 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, 2020. Provide the entry for Stonewall Corporation on January 1, 2020, to record the issuance of the bonds. Note: List multiple debits or credits (when applicable) in alphabetical order.
Financial Accounting Intro Concepts Meth/Uses
14th Edition
ISBN:9781285595047
Author:Weil
Publisher:Weil
Chapter15: Shareholders’ Equity: Capital Contributions And Distributions
Section: Chapter Questions
Problem 20E
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Recording the Issuance of Convertible Bonds
Stonewall Corporation issued $70,000 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, 2020. Provide the entry for Stonewall Corporation on January 1, 2020, to record the issuance of the bonds.
Note: List multiple debits or credits (when applicable) in alphabetical order.
| Date | Account Name | Dr. | Cr. |
|---|---|---|---|
| Jan. 1, 2020 | Answer | Answer | Answer |
| Answer | Answer | Answer | |
| Answer | Answer | Answer |
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