Pilsen Company issues 12% bonds with a face value of $10,000 and 600 shares of $10 par common stock in a combined sale, receiving total proceeds of $23,000 on December 31.

Required:

Record the transaction for each independent assumption shown:

1.The common stock has a current market value of $21 per share; the market value of the bonds is not known.

2.The common stock has a current market value of $24.50 per share; the bonds are selling at 98.