Immediately After the Last Interest Payment, Hoffman & Stuart Company

question 67

Multiple Choice

Immediately after the last interest payment, Hoffman & Stuart Company converted $2,500,000 of its bonds into 250,000 shares of $10 par value common stock. The unamortized premium on the bonds at the date of conversion was $940,000. The entry to record the conversion would include:

• A)liabilities decreased by $3,440,000 and stockholders' equity increased by $3,440,000.
• B)liabilities decreased by $3,440,000 and stockholders' equity increased by $3,600,000.
• C)liabilities decreased by $3,600,000 and stockholders' equity increased by $3,400,000.
• D)liabilities decreased by $3,600,000 and stockholders' equity increased by $3,440,000.

---

Definitions:

Parental Subsystem

Part of the family system, focusing on the roles and interactions specifically between parents, including their responsibilities and relationship dynamics.

Sibling Co-system

A term that describes the dynamic and interdependent relationships among siblings within a family system.

Societal Role-Player

An individual or group that takes on specific roles or responsibilities within a society, contributing to social functioning and structure.

Role Transition

The process of changing from one role to another, which can involve shifts in responsibilities, identity, or expectations in various contexts like career, personal life, or social standing.