If bonds with a face value of $170,000 are converted into common stock when the carrying value of the bonds is $135,000, the entry to record the conversion would include a debit to:
A)Bonds Payable for $135,000.
B)Bonds Payable for $170,000.
C)Discount on Bonds Payable for $35,000.
D)Cash for $35,000.

Question

Quizplus · Accepted Answer

The entry to record the conversion of bonds into common stock should debit Bonds Payable for the face value of the bonds, which is $170,000.

If Bonds with a Face Value of $170,000 Are Converted