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On January 1, $304,800 of par value bonds with a carrying value of $316,000 is converted to 50,800 shares of $5 par value common stock.

On January 1, $304,800 of par value bonds with a carrying value of $316,000 is converted to 50,800 shares of $5 par value common stock. The entry to record the conversion of the bonds includes all of the following entries except:

A. Debit to Bonds Payable $316,000.

B. Debit to Premium on Bonds Payable $11,200.

C. Credit to Common Stock $254,000.

D. Credit to Paid-In Capital in Excess of Par Value, Common Stock $62,000.

E. Debit to Bonds Payable $304,800.

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