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

question 169

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

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Definitions:

Declined

A term used to describe a decrease or reduction in quantity, quality, or strength over a period of time.

Immigrants

People who move to a new country or region, intending to settle and reside there, often in search of a better quality of life or opportunities.

McNary-Haugen Bill

Vetoed by President Calvin Coolidge in 1927 and 1928, the bill to aid farmers that would have artificially raised agricultural prices by selling surpluses overseas for low prices and selling the reduced supply in the United States for higher prices.

Calvin Coolidge

The 30th President of the United States (1923–1929), known for his small government conservatism and for his quiet and reserved personality, leading the nation through the Roaring Twenties.