On July 1, 2014, an interest payment date, $90,000 of Parks Co. bonds were converted into 1,800
Question:
a) A $10,800 increase in paid-in capital in excess of par.
b) A $7,200 increase in paid-in capital in excess of par.
c) No change in paid-in capital in excess of par.
d) A $5,400 increase in paid-in capital in excess of par.
Common Stock
Common stock is an equity component that represents the worth of stock owned by the shareholders of the company. The common stock represents the par value of the shares outstanding at a balance sheet date. Public companies can trade their stocks on... Par Value
Par value is the face value of a bond. Par value is important for a bond or fixed-income instrument because it determines its maturity value as well as the dollar value of coupon payments. The market price of a bond may be above or below par,...
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Related Book For
Intermediate accounting
ISBN: 978-0077647094
7th edition
Authors: J. David Spiceland, James Sepe, Mark Nelson
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