When Bonds Payable Are Converted into Stock,the Carrying Value of the Bonds
When bonds payable are converted into stock,the carrying value of the bonds should be
A) credited to Retained Earnings.
B) credited to contributed capital accounts.
C) debited to Retained Earnings.
D) debited to Loss on Conversion of Bonds.
Bonds that contain a provision that allows the holders to exchange the bonds for other securities of the issuing corporation are called
A) debenture bonds.
B) secured bonds.
C) callable bonds.
D) convertible bonds.
When bonds are sold at face value between interest dates,the result is a debit to the Cash account that
A) equals face value.
B) depends on the circumstances.
C) is less than face value.
D) exceeds face value.
Peng Corporation has been authorized to issue bonds with interest payment dates of March 1 and September 1.If the bonds are sold at face amount on April 1,the amount of cash to be received by the issuer is equal to the face amount of the bonds
A) minus the interest accrued from March 1 to April 1.
B) plus the interest accrued from April 1 to September 1.
C) minus the interest accrued from April 1 to September 1.
D) plus the interest accrued from March 1 to April 1.