On July 1, 2014, an interest payment date, $90,000 of Parks Co bonds were converted into 1,800 shares of Parks Co common stock each having a par value of $45 and a market value of $54 There is $3,600 unamortized discount on the bonds Using the book value method, Parks would record a) A $10,800 incr...

Date Title debit credit 1 July 20 ...

On July 1, 2014, an interest payment date, $90,000 of Parks Co. bonds were converted into 1,800

Question:

On July 1, 2014, an interest payment date, $90,000 of Parks Co. bonds were converted into 1,800 shares of Parks Co. each having a of $45 and a market value of $54. There is $3,600 unamortized discount on the bonds. Using the book value method, Parks would record...
a) A $10,800 increase in paid-in capital in excess of par.
b) A $7,200 increase in paid-in capital in excess of par.
c) No change in paid-in capital in excess of par.
d) A $5,400 increase in paid-in capital in excess of par.
Common Stock
Common stock is an equity component that represents the worth of stock owned by the shareholders of the company. The common stock represents the par value of the shares outstanding at a balance sheet date. Public companies can trade their stocks on... 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,...