Prepare the journal entry as of july 31 2009 to record the, Ask an Expert

Accounting

Evanston Manufacturing is faced with possible bankruptcy. Evanston has $2,000,000 bonds outstanding with an unamortized premium of $68,500. Furthermore, Evanston is behind $125,000 in interest payments. To satisfy the debt, Evanston transfers 60,000 shares of $10 par value stock with a current market value of $33.75 per share.

Prepare the journal entry, as of July 31, 2009, to record the equity transfer on Evanston's books.

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Accounting Basics, Accounting

Category:- Accounting Basics
Reference No.:- M993800

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