On January 1, $300,000 of Par Value Bonds with a Carrying

question 204

Multiple Choice

On January 1, $300,000 of par value bonds with a carrying value of $310,000 is converted to 50,000 shares of $5 par value common stock. The entry to record the conversion of the bonds includes all of the following entries except:

• A) Credit to Paid-In Capital in Excess of Par Value, Common Stock $60,000.
• B) Debit to Bonds Payable $310,000.
• C) Debit to Premium on Bonds Payable $10,000.
• D) Credit to Common Stock $250,000.
• E) Debit to Bonds Payable $300,000.

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