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.
| Account | Debit | Credit |
|
|
|
|
|
|
|
|
|
|
|
|
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started
Accounting Reform In Transition And Developing Economies
Authors: Robert W. McGee
1st Edition
0387257071, 9780387257075
