When the Conversion of Bonds Payable to Common Stock Is

question 104

Multiple Choice

When the conversion of bonds payable to common stock is recorded under the book value method and the par value of the common stock exceeds the book value of the bonds, the difference is recorded as a

• A)debit to Retained Earnings
• B)debit to Loss on Conversion
• C)debit to Additional Paid-in Capital-Common Stock
• D)debit to Discount on Bonds Payable

---

Definitions:

Development

The processes by which individuals grow and change, as well as the ways in which they stay the same over time.

Physical

Relating to the body as opposed to the mind or emotions; involving bodily movements or activities.

Spiritual

Related to or affecting the human spirit or soul as opposed to material or physical things.

Political

Relating to the structure, organization, government, or the conduct of government affairs.