When the Conversion of Bonds Payable to Common Stock Is

question 104

Multiple Choice

When the conversion of bonds payable to common stock is recorded under the book value method and the par value of the common stock exceeds the book value of the bonds, the difference is recorded as a

• A)debit to Retained Earnings
• B)debit to Loss on Conversion
• C)debit to Additional Paid-in Capital-Common Stock
• D)debit to Discount on Bonds Payable

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