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:

Host Country

The country in which a multinational company operates a facility, as opposed to the country where the company is headquartered.

Qualified People

Individuals who meet the necessary standards and qualifications for a job, project, or activity, based on their skills, experiences, and education.

Extroverted

A personality trait characterized by being outgoing, sociable, and energized by interactions with others.

Agreeable

A personality trait characterized by a tendency to be pleasant, cooperative, and harmonious in interactions with others.