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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Definitions:

Three-Stage Model

A model that describes memory processing in three distinct stages: sensory memory, short-term (or working) memory, and long-term memory.

Memory Storage

The process by which information is encoded, stored, and retrieved in the brain, forming the basis for learning and remembering.

Short-Term Memory

The capacity to hold a small amount of information in mind in an active, readily available state for a short period of time.

Capacity

The maximum amount that something can contain or produce, or the ability of an individual or system to execute tasks or processes.