Question
Sunshine Company has $80,000, 10%, 5-year convertible bonds. On 1 st of November, the company decided to convert it into 4000 shares $15 par value
Sunshine Company has $80,000, 10%, 5-year convertible bonds. On 1st of November, the company decided to convert it into 4000 shares $15 par value common stock. On that day the market value of Sunshine's common stock was $18 per share and 90,000 for bonds.
prepare the journal entry to record the conversion.
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Intermediate Accounting
Authors: Donald E. Kieso, Jerry J. Weygandt, And Terry D. Warfield
13th Edition
978-0470423684
