On January 1, 2014, Darth Corp. issued 50,000 of five-year, $1,000 bonds payable at 104. These bonds were each convertible into 100 shares of $10 par common stock. On January 1, 2017, Darth converted all of these bonds when the stock was selling at $11.50 a share.
Required:
Complete the matrix below to indicate the amounts that would be recorded for the indicated accounts in the journal entry to record the bond conversion. Then record the journal entry for the bond conversion.

Question

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The Answer of On January 1, 2014, Darth Corp. issued 50,000 of five-year, $1,000 bonds payable at 104. These bonds were each convertible into 100 shares of $10 par common stock. On January 1, 2017, Darth converted all of these bonds when the stock was selling at $11.50 a share.
Required:
Complete the matrix below to indicate the amounts that would be recorded for the indicated accounts in the journal entry to record the bond conversion. Then record the journal entry for the bond conversion.