Answer:
There will be a $9,250 increase in paid-in capital in excess of par
Explanation:
Given:
Face value of bonds =$148,000
Unamortized Discount = $6,900
Common stock shares in conversion = $45/value share
Therefore, computed increase to be paid-in capital in excess of par will be given as (Bramble's record):
Book Value of Bonds = (Face Value of Bonds, $148,000) - (Unamortized Discount, $6900) = $141,100;
(Book Value of Bonds, $141,100) - (Value Assigned to Common Stock, $131,850(2930 Common Stock Shares in Conversion x $45 par value per share)) =
=$9,250 increase to Paid-In Capital in Excess of Par.
Note: value assigned to common stock = 2939 * 45 =131850
