If Bonds with a Face Value of $170,000 Are Converted

question 21

Multiple Choice

If bonds with a face value of $170,000 are converted into common stock when the carrying value of the bonds is $135,000, the entry to record the conversion would include a debit to:

• A)Bonds Payable for $135,000.
• B)Bonds Payable for $170,000.
• C)Discount on Bonds Payable for $35,000.
• D)Cash for $35,000.