Multiple Choice Question 63 43 $1000 bonds with a carrying value of $52600 are c

Question

Multiple Choice Question 63 43 $1000 bonds with a carrying value of $52600 are converted into 4000 shares of $5 par value common stodk. The common stock had a market vakue of s9 per share on the date of conversion. The entry to record the conversion is O Bonds Payable Premium on Bonds Payable 9600 Common Stock 20000 Paid-in Capital in Excess of Par 32600 Bonds Payable 52600 Common Stock Paid-in Capital in Excess of Par 20000 32600 O Bonds Payable 52600 36000 Common Stock Paid-in Capital in Excess of Par 6600 O Bonds Payable 43000 9600 Premium on Bonds Payable 43000 9600 Common Stock Paid-in Capital in Excess of Par

Explanation / Answer

63) The Answer is "A"

Journal Entry :-

65 ) The Answer is "A"

A. $163400

Calculation ;-

= ($160000/$100)*$102.125

= 1600*$102.125

= $163400

80. The Answer is "B".

Journal Entry ;-

85) The Answer is "C"

Journal Entry ;-

87) The Answer is "B"

B. $3700 Gain

Calculation of Gain/(Loss) :-

= (($1400000+$17700)-($1400000*(101/100)))

= $1417700 - 1414000

= $3700

Particulars Debit($) Credit($) Bonds Payable A/c Dr. 43000 Premium on Bonds Payable A/c Dr. 9600 To Common Stock A/c 20000 To Paid in Capital in Excess of Par 32600

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