question archive If bonds for Crayon Corporation, with a face value of $150,000, are converted into common stock when the carrying value of the bonds is $135,000, the entry to record the conversion will include a debit to a
If bonds for Crayon Corporation, with a face value of $150,000, are converted into common stock when the carrying value of the bonds is $135,000, the entry to record the conversion will include a debit to a
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If bonds for Crayon Corporation, with a face value of $150,000, are converted into common stock when the carrying value of the bonds is $135,000, the entry to record the conversion will include a debit to
a.Discount on Bonds Payable for $15,000.
b.Bonds Payable for $135,000.
c. Bonds Payable for $150,000.
d. Bonds Payable equal to the market price of the bonds on the date of conversion.
e. none of the above
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Answer:
C part RS.1,50,000
Bonds are a form of long-term debt. Bonds can also be retired by converted into stock.
Entry
Bonds payable Dr
To cash
