A Company Has $817,000 in Bonds Payable with an Unamortized $\begin{array}{l}\text { Bonds Payable } &204,250\\\text { Common Stock }&&204,250\end{array}$

question 192

Multiple Choice

A company has $817,000 in bonds payable with an unamortized premium of $20,000.If one-fourth of the bonds are converted to common stock,the entry that would record the conversion is:

• A)
• \(\begin{array}{l}
• \text { Bonds Payable } &204,250\\
• \text { Common Stock }&&204,250
• \end{array}\)
• B)
• \(\begin{array}{l}
• \text { Bonds Payable }&224,250 \\
• \text { Common Stock }&&224,250
• \end{array}\)
• C)
• \(\begin{array}{cc}
• \text { Common Stock } & 199,250 \\
• \text { Bonds Payable } && 199,250
• \end{array}\)
• D)
• \(\begin{array}{llr}
• \text {Bonds Payable } &204,250\\
• \text {Unamortized Bond Premium } &&5,000\\
• \text { Common Stock } &&&209,250
• \end{array}\)

Understand the structure and utility of business unit profit and loss statements for organizational performance evaluation.

Evaluate key financial and non-financial performance measures for various centers (cost, profit, investment, and revenue centers).

Understand the principles and applications of transfer pricing, including cost-plus and market-price policies.

Identify and evaluate the factors influencing the setting of transfer prices.

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Definitions:

Suburban Mall

A large retail complex located in a suburban area, typically anchored by major department stores and featuring a wide range of smaller retailers and food outlets.

Downtown Area

The central business district of a city, often characterized by a high concentration of retail stores, office buildings, and cultural amenities.

Major Amusement Park

A large-scale theme park offering a variety of rides, shows, and attractions designed to cater to both adults and children.

Department Store Branch

A subsidiary location of a major department store, often found in different cities or areas from the main store.