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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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