Exhibit 14-14 Marley, Inc sold $500,000 of its ten-year 8% bonds at 96 on January 1, 2014. Interest is paid each January 1 and July 1 and straight-line amortization is used. Each $1,000 bond is convertible into 100 shares of $10 par common stock. One-half of the bonds were converted on January 1, 2019, when the market value of the stock was $14 per share. ? Refer to Exhibit 14-14. The entry to
record the conversion using the book value method would include a
A) debit to Loss on Conversion for $5,000.
B) debit to Retained Earnings for $5,000.
C) debit to Discount on Bonds Payable for $5,000.
D) credit to Additional Paid-in Capital from Bond Conversion for $5,000.
B
You might also like to view...
Criminal defendants have the right to a lawyer at all the important stages of the criminal process.
Answer the following statement true (T) or false (F)
Service firms cannot use job order costing for determining a selling price for their services.
Answer the following statement true (T) or false (F)
In the confidence interval formula for sample size, the symbol e represents:
A) efficiency of the sample (desired accuracy given the cost) B) sample frame error C) acceptable error (desired accuracy level) D) elasticity E) none of the above; the formula has no e
As production decreases, fixed costs per unit will
A) increase. B) decrease. C) remain the same. D) either increase or decrease, depending on the variable cost.