8

On January 1, $343,200 of par value bonds with a carrying value of $364,000 is converted to 57,200 shares of $5 par value common stock. The entry to record the conversion of the bonds includes all of the following entries except:

Debit to Bonds Payable $364,000.

Debit to Premium on Bonds Payable $20,800.

Credit to Common Stock $286,000.

Credit to Paid-In Capital in Excess of Par Value, Common Stock $78,000.

Debit to Bonds Payable $343,200.