Walsh Beverages has outstanding convertible debt with a book value of $ 325,700 at the end of

Question:

Walsh Beverages has outstanding convertible debt with a book value of $ 325,700 at the end of the current year. The bonds have a total par of $ 300,000 and an unamortized premium of $ 25,700. Each $ 1,000 bond is convertible into 20 shares of $ 1 common stock. Prepare the journal entry required to record the bond conversion. Par Value
Par value is the face value of a bond. Par value is important for a bond or fixed-income instrument because it determines its maturity value as well as the dollar value of coupon payments. The market price of a bond may be above or below par,...