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 54

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

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