When Bonds Are Converted into Common Stock and the Conversion

question 65

Short Answer

When bonds are converted into common stock and the conversion is recorded the ________________ of the bonds is transferred to paid-in capital accounts.

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Definitions:

Stock Warrants

Financial instruments that give the holder the right to purchase a company's stock at a specified price before the warrant expires.

Exercise Date

The specific date on which an option contract can be executed or acted upon by the holder.

Fixed Compensatory

Relates to a form of compensation or damages that are predetermined and not subject to change.