Question: Petrenko SA has outstanding 2,000 1,000 bonds, each convertible into 50 shares of 10 par value ordinary shares. The bonds are converted on December 31,

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

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