Lloyd Corporation Has $2,100,000 of Bonds Outstanding with an Unamortized

question 18

Multiple Choice

Lloyd Corporation has $2,100,000 of bonds outstanding with an unamortized premium of $105,000 immediately following the last interest payment. At that time, the bonds were converted into 270,000 shares of $8 par value common stock. As a result of this conversion:

• A)liabilities decreased by $1,995,000 and stockholders' equity increased by $1,995,000.
• B)liabilities decreased by $2,100,000 and stockholders' equity increased by $2,100,000.
• C)liabilities decreased by $2,205,000 and stockholders' equity increased by $2,205,000.
• D)liabilities increased by $1,995,000 and stockholders' equity increased by $1,995,000.

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Definitions:

English Law

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Rights that are bestowed upon individuals by the legal system, including civil, political, and social rights protected by law.

Golden Cities

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