Petrenko SA has outstanding 2,000 1,000 bonds, each convertible into 50 shares of 10 par value ordinary

Question:

Petrenko SA has outstanding 2,000 €1,000 bonds, each convertible into 50 shares of €10 ordinary shares. The bonds are converted on December 31, 2019. The bonds payable have a carrying value of €1,950,000, and there is conversion equity of €20,000. Record the conversion using the book value method.
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,...