Question 7

A:

Oriole Company issued at a premium of $10200 a $209000 bond issue convertible into 3000 shares of common stock (par value $20). At the time of the conversion, the unamortized premium is $3700, the market value of the bonds is $229000, and the stock is quoted on the market at $60 per share. If the bonds are converted into common, what is the amount of paid-in capital in excess of par to be recorded on the conversion of the bonds?

$149000

$172700

$159200

$152700

B:

In January 2020, Sheridan Company, a newly formed company, issued 9900 shares of its $12 par common stock for $17 per share. On July 1, 2020, Sheridan Company reacquired 990 shares of its outstanding stock for $14 per share. The acquisition of these treasury shares

increased total stockholders' equity.

did not change total stockholders' equity.

decreased total stockholders' equity.

decreased the number of issued shares.