If convertible notes payable are converted into common stock,the entry to record the conversion would include a debit to:
A)convertible notes payable.
B)common stock.
C)paid-in capital in excess of par.
D)cash.

Question

Quizplus · Accepted Answer

When convertible notes payable are converted into common stock, the entry includes a debit to convertible notes payable to remove the liability from the books. This reflects the extinguishment of the debt obligation through conversion into equity.

If Convertible Notes Payable Are Converted into Common Stock,the Entry