On January 1, 2021, Starlight Company converted $150,000 bonds into 90,000 shares of $1 par value common stock. The bonds were issued at face value. On the date of the conversion, the stocks had a market price of $6 per share.

which one is correct?

 

  

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Options A B D Bonds Payable Common Stock Paid-in Capital in Excess of Par-Common Stock Bonds Payable Common Stock Bonds Payable Account Titles Common Stock Paid-in Capital in Excess of Par-Common Stock Bonds Payable Common Stock Dr. 540,000 150,000 150,000 90,000 Cr. 90,000 450,000 150,000 90,000 60,000 90,000 Options A B D Bonds Payable Common Stock Paid-in Capital in Excess of Par-Common Stock Bonds Payable Common Stock Bonds Payable Account Titles Common Stock Paid-in Capital in Excess of Par-Common Stock Bonds Payable Common Stock Dr. 540,000 150,000 150,000 90,000 Cr. 90,000 450,000 150,000 90,000 60,000 90,000

Answer rating: 100% (QA)

The right option is c Explanation JOURNAL Date Particulars Debit ... View the full answer