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On January 1, $367,200 of par value bonds with a carrying value of $394,000 is converted to 61,200 shares of $5 par value common stock.
On January 1, $367,200 of par value bonds with a carrying value of $394,000 is converted to 61,200 shares of $5 par value common stock. The entry to record the conversion of the bonds includes all of the following entries except Multiple Choice Debit to Bonds Payable $394,000. Debit to Premium on Bonds Payable $26,800. Credit to Common Stock $306,000. O O Credit to Pald-In Capital In Excess of Par Value, Common Stock $88,000. O Debit to Bonds Payable $367,200
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