Question: On January 1, 2011, the $1,000,000 par value bonds of Gruden Company with a carrying value of $1,000,000 are converted to 500,000 shares of $0.50

On January 1, 2011, the $1,000,000 par value bonds of Gruden Company with a carrying value of $1,000,000 are converted to 500,000 shares of $0.50 par value common stock. Record the entry for the conversion of the bonds.

Step by Step Solution

★★★★★

3.33 Rating (168 Votes )

There are 3 Steps involved in it

1 Expert Approved Answer

Step: 1 Unlock

2011 Jan 1 Bonds Payable 1000000 Comm... View full answer

Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock

Step: 3 Unlock

Document Format (1 attachment)

202-B-A-L (2391).docx

120 KBs Word File

Students Have Also Explored These Related Accounting Questions!

A Starbucks franchisee purchased a coffee drink machine on January 1, 2011, for $44,000. The expected useful life is ten years or 100,000 drinks. In 2010, 3,000 drinks were sold, and in 2011, 14,000...

On January 1,2011, the $1,000,000 par value bonds of Gruden Company with a carrying value of $1,000,000 are converted to 500,000 shares of $0.50 par value common stock. Record the entry for the...

The 16-year, $1,000 par value bonds of Waco Industries pay 7 percent interest annually. The market price of the bond is $895, and the market's required yield to maturity on a comparable -risk bond is...

On January 1, 2016, Bramble Company issued 10-year, $92,000 face value, 6% bonds at par (interest payable annually on January 1). Each $1,000 bond is convertible into 29 shares of Bramble $2 par...

please answer the following multiple choice 5 of 7 5956,000 D) $131.500 20. The following information is from the balance sheet of Teder Cage s of December 31, 2014 Preferred stock, S100 par $...

1. (TCO A) On July 1, 2010, an interest payment date, $60,000 of Parks Co. bonds were converted into 1,200 shares of Parks Co. common stock, each having a par value of $45 and a market value of $54....

Stockholders Equity Transactions, Journal Entries, and T-Accounts The stockholders equity of Xeltron Corporation at January 1 follows: 10 % Preferred stock, $100 par value, 20,000 shares authorized;...

Stockholders Equity: Transactions and Balance Sheet Presentation The following is the stockholders equity of Clipper Corporation at January 1: 8 Percent preferred stock, $50 par value, 10,000 shares...

3 My Subscriptions Business Course Return to course Duration 2 Not Com Markedet of P a question Stockholders' Equity Section of the balance sheet The stockholders' equity of Xeltron Corporation at...

You have probably heard it is unwise to bite the hand that feeds you. Independent auditors are chosen by, paid by, and can be fired by the companies they audit. What keeps the auditor independent? In...

What type of data (categorical, discrete numerical, or continuous numerical) is each of the following variables? If there is any ambiguity about the data type, explain why the answer is unclear. a....

Net present value: is the easiest method of evaluation for nonfinancial managers

Harold Long started a business in May 20-- called Harolds Home Repair. Long hired a part-time college student as an assistant. Long has decided to use the following accounts for recording...

Baird Products Inc., a wholesaler of office products, was organized on January 30 of the current year, with an authorization of 80,000 shares of 2% preferred stock, $75 par and 800,000 shares of $20...

On January 14, Mountain Rocks Inc., a marble contractor, issued for cash 24,000 shares of $25 par common stock at $32, and on March 17, it issued for cash 60,000 shares of $10 par preferred stock at...

On July 12, Lasting Carper Inc., a carpet wholesaler, issued for cash 300,000 shares of no-par common stock (with a stated value of $4) at $9, and on November 18, it issued for cash 40,000 shares of...

A Del Hardware has four employees who are paid on an hourly basis plus time-and-a half for all hours worked in excess of 40 a week. Payroll data for the week ended March 15, 2010, are presentd below....

Financial statements shall include disclosures of material transactions between related parties except a. Nonmonetary exchanges by affiliates. b. Sales of inventory by a subsidiary to its parent. c....

Refer to Apples financial statements in Appendix A for the following questions. Required 1. What amount of total liabilities does it report for each of the fiscal years ended September 28, 2013, and...

Key comparative figures for Apple and Google follow. 1. What is the debt ratio for Apple in the current year and for the prior year? 2. What is the debt ratio for Google in the current year and for...

Lila Corentine is an aspiring entrepreneur and your friend. She is having difficulty understanding the purposes of financial statements and how they fit together across time. Required Write a...

Suppose you write 24 call option contracts with a $70 strike. The premium is $2.89. Evaluate your potential gains and losses at option expiration for stock prices of $60, $70, and $80. (Input all...

Two customers enter a store. Independently, they make decisions to purchase or not to purchase.The following diagrams shows how the outcomes can occur and combine with red bolding of sequence...

List and briefly explain the function of each of the layers in the OSI model