Answer:
(C) Bonds Payable for $150,000
Explanation:
the face value of the bonds will the value at which bonds payable account enter the accounting. Then, there is a discount which decrease the net value of the bonds:
Bonds Payable 150,000 credit
Discount on bonds 15,000 debit
When the bonds are converted, we will write-off these account against common stock and additional paid-in
To wirte-off the account we need to post them in the other side so we got:
Bonds payable debit 150,000 debit
Discount on bonds 15,000 credit
Common Stock xx credit
Additional paid.in xx credit
These makes option C correct
