Cruise, Inc. has $340,000 convertible bonds outstanding on January 1. The bonds were issued at par...

Transcribed Image Text:

Cruise, Inc. has $340,000 convertible bonds outstanding on January 1. The bonds were issued at par value. The bonds are to be converted to the corporation's common stock. The bondholders will receive 160,000 shares no par common stock at the time of conversion. Prepare the journal entry Cruise, Inc. will record in its accounting records on the January 1 conversion date (Hint: use the Account List - click to pop open to help you with your journal entries). Date 01/01 Description to record the conversion of bonds. > Next Question Debit Credit Cruise, Inc. has $340,000 convertible bonds outstanding on January 1. The bonds were issued at par value. The bonds are to be converted to the corporation's common stock. The bondholders will receive 160,000 shares no par common stock at the time of conversion. Prepare the journal entry Cruise, Inc. will record in its accounting records on the January 1 conversion date (Hint: use the Account List - click to pop open to help you with your journal entries). Date 01/01 Description to record the conversion of bonds. > Next Question Debit Credit