On January 1, $328,800 of par value bonds with a carrying value of $346,000 is converted to 54,800 shares of $5 par value common stock. The entry to record the conversion of the bonds includes all of the following entries except:

A. Debit to Bonds Payable $328,800.
B. Credit to Paid-In Capital in Excess of Par Value, Common Stock $72,000.
C. Credit to Common Stock $274,000.
D. Debit to Premium on Bonds Payable $17,200.
E. Debit to Bonds Payable $346,000.


Answer: E

Business

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