On June 30, 2013, Blair Industries had outstanding $80 million of 8% convertible bonds that mature on

Question:

On June 30, 2013, Blair Industries had outstanding $80 million of 8% convertible bonds that mature on June 30, 2014. Interest is payable each year on June 30 and December 31. The bonds are convertible into 6 million shares of $10 par common stock. At June 30, 2013, the unamortized balance in the discount on bonds payable account was $4 million. On June 30, 2013, half the bonds were converted when Blair's had a market price of $30 per share. When recording the conversion, Blair should credit paid-in capital-excess of par:
A. $6 million.
B. $8 million.
C. $10 million.
D. $12 million.
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...