Bonds with a Maturity Value of $200,000 and a an Unamortized

question 89

Multiple Choice

Bonds with a maturity value of $200,000 and a an unamortized discount of $5,000 are converted into common shares.The entry will include a:

• A) debit to Loss on Bonds Payable for $5,000
• B) debit to Discount on Bonds Payable for $5,000
• C) credit to Common Shares for $195,000
• D) credit to Common Shares for $200,000

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