Using the information from BE14- 24, prepare the journal entry to record the bond conversion, assuming the
Question:
In BE14-24
Lee Equipment Company issued 200 eight- year, 6% convertible bonds for $ 227,200. Each bond had a par value of $ 1,000. Each $ 1,000 bond converts into eight shares of $ 1 par value common stock at the option of the bondholder beginning two years after the date of issue. The market price of the common stock on the purchase commitment date was equal to $ 120 per share and the market rate of interest was 6% at issuance. Prepare the journal entry to record the bond issue. Common Stock
Common stock is an equity component that represents the worth of stock owned by the shareholders of the company. The common stock represents the par value of the shares outstanding at a balance sheet date. Public companies can trade their stocks on... Par Value
Par value is the face value of a bond. Par value is important for a bond or fixed-income instrument because it determines its maturity value as well as the dollar value of coupon payments. The market price of a bond may be above or below par,...
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Related Book For 
Intermediate Accounting
ISBN: 978-0132162302
1st edition
Authors: Elizabeth A. Gordon, Jana S. Raedy, Alexander J. Sannella
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