Question

On January 1, $300,000 of par value bonds with a carrying value of $310,000 is converted to 50,000 shares of $5 par value common stock. The entry to record the conversion of the bonds includes all of the following entries except: Group of answer choices Credit to Common Stock $250,000. Debit to Bonds Payable $300,000. Debit to Bonds Payable $310,000. Credit to Paid-In Capital in Excess of Par Value, Common Stock $60,000. Debit to Premium on Bonds Payable $10,000.

Answer 1

Answer:

Debit bonds payable $310000

Explanation:

Based on the information given The entry to record the conversion of the bonds will includes all of the following entries except Debit bonds payable $310000 reason been that we were told that On January 1, the par value bonds of $300,000 has with a carrying value of the amount of $310,000 which was converted to 50,000 shares of $5 par value common stock, which means that we are supposed to debit the amount, credit it to Equity/common stock.