Help me to answer this question, Thanks!! ABC company is issued bond is 10 years of...
Help me to answer this question, Thanks!!
ABC company is issued bond is 10 years of 9% on January 1, 2015, and the bond price is $50,000. Provide the general journal entry to record the conversion of 25% of the bonds to 2000 shares of $1. par value common stock on April 15, 2018.
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| Please find below the answer | ||
| Statementshowing Computations | ||
| Paticulars | Amount | |
| Price of bonds | 50,000.00 | |
| 25% of the bonds= 50,000*25% | 12,500.00 | |
| Apr 15'2018 | Dr | Cr |
| Bonds Payable | 12,500.00 | |
| To common stock =2000*1 | 2,000.00 | |
| To Additional paid in capital | 10,500.00 | |
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