Knowledge Check 01\ Kelly Company issued

$100,000

of

5%,10

-year bonds at 102 to a single investor. Each of the

$1,000

bonds was convertible into 100 shares of no par common stock. The bonds were later converted when the remaining unamortized premium was

$1,000

. What is the amount that Kelly will credit to Common Stock when recording the conversion of the bonds?

Knowledge Check 01 Kelly Company issued $100,000 of 5%,10-year bonds at 102 to a single investor. Each of the $1,000 bonds was convertible into 100 shares of no par common stock. The bonds were later converted when the remaining unamortized premium was $1,000. What is the amount that Kelly will credit to Common Stock when recording the conversion of the bonds