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

Answer

		Bonds Payable ......................................................................... 39,600 Common Stock ............................................................... 20,000 Paid-in Capital in Excess of Par.......................................... 19,600
		Bonds Payable ......................................................................... 30,000 Premium on Bonds Payable ....................................................... 9,600 Common Stock ............................................................... 30,000 Paid-in Capital in Excess of Par ......................................... 3,600
		Bonds Payable ......................................................................... 30,000 Premium on Bonds Payable ....................................................... 9,600 Common Stock ............................................................... 20,000 Paid-in Capital in Excess of Par.......................................... 19,600
		Bonds Payable ......................................................................... 39,600 Common Stock ............................................................... 36,000 Paid-in Capital in Excess of Par.......................................... 3,600