urgent 2394

Marigold Corp. has $3810000 of 8% convertible bonds outstanding. Each $1,000 bond is convertible into 30 shares of $30 par value common stock. The bonds pay interest on January 31 and July 31 . On July 31,2021 , the holders of $1290000 bonds exercisesthe conversion privilege. On that date the market price of the bonds was 104 and the market price of the common stock was $36. The total unamortized bond premium at the date of conversion was $278000. Marigold should record, as a result of this conversion, a credit of $197920 to Paid-in Capital in Excess of Par. credit of $88960 to Premium on Bonds Payable. loss of $12900. credit of $223520 to Paid-in Capital in Excess of Par