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Gabel CO has bonds payable outstanding in the amount of $400,000 and the Premium on Bonds Payable account has a balance of $6,000. Each $1,000
Gabel CO has bonds payable outstanding in the amount of $400,000 and the Premium on Bonds Payable account has a balance of $6,000. Each $1,000 bond is convertible into 20 shares of preferred stock of par value of $50 per share. All bonds are converted into preferred stock. Assuming that the book value method was used, what entry would be made? Thank you very much
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