Blue Corporation has outstanding 2,000 of $1,000 bonds, each convertible into 60 shares of $10 par value common stock. The bonds are converted on December 31, 2025, when the unamortized discount is $38.200 and the market price of the stock is $21 per share. Record the conversion using the book value approach. (List all debit entries before credit entries. Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter O for the amounts) Account Titles and Explanation Bonds Payable Common Stock Discount on Bonds Payable Paid-in Capital in Excess of Par-Common Stock Debit 2000000 Credit 1000000 38200 961800

Blue Corporation has outstanding 2,000 of $1,000 bonds, each convertible into 60 shares of $10 par value common stock. The bonds are converted on December 31, 2025, when the unamortized discount is $38.200 and the market price of the stock is $21 per share. Record the conversion using the book value approach. (List all debit entries before credit entries. Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter O for the amounts) Account Titles and Explanation Bonds Payable Common Stock Discount on Bonds Payable Paid-in Capital in Excess of Par-Common Stock Debit 2000000 Credit 1000000 38200 961800

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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