PayPow Corp. has outstanding 8,000, $1,000 bonds. Each bond is convertible into 100 shares of...
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Accounting
PayPow Corp. has outstanding 8,000, $1,000 bonds. Each bond is convertible into 100 shares of $1 par value common stock. The bonds are converted on December 31, 2017 when the unamortized discount on the bonds is $60,000 and the market price of the stock is $30 per share.
The journal entry to record the conversion would require a:
Select one:
Credit to common stock of $24,000,000
Debit to discount on bonds payable of $60,000
Credit to paid in capital of $7,260,000
Credit to discount on bonds payable of $60,000
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