If Bonds with a Face Value of $200,000 Are Converted

question 182

Multiple Choice

If bonds with a face value of $200,000 are converted into common stock when the carrying value of the bonds is $155,000,the entry to record the conversion would include a debit to:

• A)Bonds Payable for $155,000.
• B)Bonds Payable for $200,000.
• C)Discount on Bonds Payable for $45,000.
• D)Cash for $45,000.

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Definitions:

Demand Uncertainty

The unpredictability or variability in consumer demand for products or services.

Postponement

A strategy delaying the final stages of production or distribution to better match product variety with customer demand.

Optimal Number

Describes the best or most efficient amount or level of something (e.g., inventory, employees) for achieving a specific goal or maximizing performance.

Supply Chain Management

Supply Chain Management is the coordinated management of the processes and functions involved in producing and delivering goods or services from suppliers to customers.