Thirty

$1,000

bonds with a carrying value of

$39,600

are converted into 4,000 shares of

$5

par value common stock. The common stock had a market value of

$9

per share on the date of conversion. The entry to record the conversion is\ Debit Bonds Payable 39,600\ Credit Common Stock 20,000\ Credit Paid-in Capital in Excess of Par 19,600\ Debit Bonds Payable 30,000\ Debit Premium on Bonds Payable 9,600\ edit Common Stock 30,000\ 'edit Paid-in Capital in Excess of Pa 3,600\ Debit Bonds Payable 30,000\ Debit Premium on Bonds Payable 9,600\ Credit Common Stock 20,000\ Credit Paid-in Capital in Excess of Par 19,600\ Debit Bonds Payable 39,600\ Credit Common Stock 36,000\ Credit Paid-in Capital in Excess of Par 3,600

Thirty $1,000 bonds with a carrying value of $39,600 are converted into 4,000 shares of $5 par value common stock. The common stock had a market value of $9 per share on the date of conversion. The entry to record the conversion is Debit Bonds Payable 39,600 Credit Common Stock 20,000 Credit Paid-in Capital in Excess of Par 19,600 Debit Bonds Payable 30,000 Debit Premium on Bonds Payable 9,600 Credit Common Stock 30,000 Credit Paid-in Capital in Excess of Pa $3,600 Debit Bonds Payable 30,000 Debit Premium on Bonds Payable 9,600 Credit Common Stock 20,000 Credit Paid-in Capital in Excess of Par 19,600 Debit Bonds Payable 39,600 Credit Common Stock 36,000 Credit Paid-in Capital in Excess of Par 3,600