Ask Question, Ask an Expert

+1-415-315-9853

info@mywordsolution.com

Ask Basic Finance Expert

problem:  If twenty (20) $1,000 convertible bonds with a carrying rate of dollar 25,000 are converted into 3,000 shares of dollar 5 par value common stock, the journal entry to record the conversion is

[A] Bonds Payable ........................... 20,000

Premium on Bonds Payable ................ 5,000

Common Stock ......................... 25,000

[B] Bonds Payable ........................... 25,000

Discount on Bonds Payable ............ 5,000

Common Stock ......................... 15,000

Paid-in Capital in Excess of Par ..... 5,000

[C] Bonds Payable ........................... 25,000

Common Stock ......................... 25,000

[D] Bonds Payable ........................... 20,000

Premium on Bonds Payable ................ 5,000

Common Stock ......................... 15,000

Paid-in Capital in Excess of Par .... 10,000

Basic Finance, Finance

  • Category:- Basic Finance
  • Reference No.:- M920559

Have any Question? 


Related Questions in Basic Finance

List the major responsibilities of each of the followinga

List the major responsibilities of each of the following: a. the Board of Governors b. the 12 Reserve Banks c. the Federal Open Market Committee

Why might a sterilized foreign exchange market intervention

Why might a sterilized foreign exchange market intervention have a greater impact on the exchange rate in times of financial stress than in times of normal market conditions?

Jackson corporations bonds have 19 years remaining to

Jackson Corporation's bonds have 19 years remaining to maturity. Interest is paid annually, the bonds have a $1,000 par value, and the coupon interest rate is 9.5%. The bonds have a yield to maturity of 12%. What is the ...

Suppose that the government of chile reduces one of its key

Suppose that the government of Chile reduces one of its key interest rates. The values of several other Latin American currencies are expected to change substantially against the Chilean peso in response to the news. a. ...

Suppose a firm has several divisions each with a unique

Suppose a firm has several divisions, each with a unique area of business. What role does the firm-wide weighted average cost of capital play when determining a project's cost of capital in a given division?

What will be the worth of a bond with a par value of 1000

What will be the worth of a bond with a par value of $1000 earning a coupon interest rate of 12% and paying interest semi-annually at the end of the fifth year if the cost of capital is 8%.

10000 stock options have been granted to management as an

10,000 stock options have been granted to management as an incentive to grow the company. The options have been valued using the Black Scholes option pricing methodology at $1.50 per option and vest over five years. What ...

Excel exercise loan amoritizationloan amoritization video

Excel Exercise: Loan Amoritization Loan Amoritization Video: https://www.youtube.com/watch?v=PlMvy2fnrQ0 Create a Loan Amortization Schedule Excel Assignment For this assignment you are required to create two loan amorti ...

Why does financial intermediation inherently involve

Why does financial intermediation inherently involve risk? Are FIs better at evaluating risks than you are? Why or why not?

In order to obtain a sample of voters in pennsylvania a

In order to obtain a sample of voters in Pennsylvania, a simple random sample of 10 counties is selected. From each of the selected counties, 10 precincts are chosen at random. Finally, from each of these 100 precincts , ...

  • 4,153,160 Questions Asked
  • 13,132 Experts
  • 2,558,936 Questions Answered

Ask Experts for help!!

Looking for Assignment Help?

Start excelling in your Courses, Get help with Assignment

Write us your full requirement for evaluation and you will receive response within 20 minutes turnaround time.

Ask Now Help with Problems, Get a Best Answer

A cola-dispensing machine is set to dispense 9 ounces of

A cola-dispensing machine is set to dispense 9 ounces of cola per cup, with a standard deviation of 1.0 ounce. The manuf

What is marketingbullwhat is marketing think back to your

What is Marketing? • "What is marketing"? Think back to your impressions before you started this class versus how you

Question -your client david smith runs a small it

QUESTION - Your client, David Smith runs a small IT consulting business specialising in computer software and techno

Inspection of a random sample of 22 aircraft showed that 15

Inspection of a random sample of 22 aircraft showed that 15 needed repairs to fix a wiring problem that might compromise

Effective hrmquestionhow can an effective hrm system help

Effective HRM Question How can an effective HRM system help facilitate the achievement of an organization's strate