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Patrick Rach International Issued 5% Bonds Convertible into Shares of the Company's

Question 108

Multiple Choice

Patrick Rach International issued 5% bonds convertible into shares of the company's common stock. Rach applies U.S. GAAP. Upon issuance, Patrick Rach International should record:


A) The proceeds of the bond issue as part debt and part equity.
B) The proceeds of the bond issue entirely as debt.
C) The proceeds of the bond issue entirely as equity.
D) The proceeds of the bond issue entirely as debt if the bonds are mandatorily redeemable.

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