The Journal Entry to Record the Conversion of Bonds Payable

question 100

Multiple Choice

The journal entry to record the conversion of bonds payable into common stock will include a:

• A)debit to Bonds Payable and a credit to Common Stock.
• B)debit to Bonds Payable and a credit to Cash.
• C)debit to Cash and a credit to Common Stock.
• D)debit to Cash and a credit to Paid-in Capital in Excess of Par.

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Definitions:

Cartilaginous Fishes

Fish that have skeletons made entirely of cartilage, such as sharks and rays.

Bony Fishes

Fish that have skeletons primarily made of bone, as opposed to cartilaginous fishes, which have skeletons made of cartilage.

Keel Of The Sternum

The central ridge or projection on the sternum (breastbone) that resembles the keel of a boat, more prominent in some animals like birds for attachment of flight muscles.

Hollow

Having a space or cavity inside; not solid.