Brief Exercise 16-2

Shamrock Corporation has outstanding 2,200 $1,000 bonds, each convertible into 50 shares of $10 par value common stock. The bonds are converted on December 31, 2017, when the unamortized discount is $34,400 and the market price of the stock is $21 per share. Record the conversion using the book value approach.

Account Titles and Explanation	Debit	Credit
Bonds Payable Discount on Bonds Payable Common Stock
Paid Capitol in Excess