Question 6 Bonds payable with a face value of $100,000 and a carrying value of $110,000 elected to convert into 8,000 common shares (Par value, $10) when the shares were trading at $35. Which of the following credits would be recorded in the journal entry for this conversion? Credit common stock for $110,000 3 pts Cr. common stock for 80,000 and Cr. gain from conversion for 30,000 Cr. common stock for 80,000 and Cr. additional paid-in capital for $30,000 Credit Bonds payable for $100,000 and credit bond premium for 10,000

Bonds payable with a face value of $100,000 and a carrying value of $110,000 elected to convert into 8,000 common shares (Par value, $10 ) when the shares were trading at $35. Which of the following credits would be recorded in the journal entry for this conversion? Credit common stock for $110,000 Cr. common stock for 80,000 and Cr. gain from conversion for 30,000 Cr. commen stock for 80,000 and Cr. additional paid-in capital for $30,000 Credit Bonds payable for $100,000 and credit bond premium for 10,000