If bonds 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) Bonds Payable for $150,000.
B) Bonds Payable for $135,000.
C) Discount on Bonds Payable for $15,000.
D) Bonds Payable equal to the market price of the bonds on the date of conversion.

Question

Quizplus · Accepted Answer

The entry to record the conversion of bonds into common stock includes debiting Bonds Payable for the face value of the bonds, which is $150,000.

If Bonds with a Face Value of $150,000 Are Converted