Question: When bonds payable are converted into stock, the carrying value of the bonds should be: a) debited to Retained Earnings. b) credited to Retained Earnings.

When bonds payable are converted into stock, the carrying value of the bonds should be:

a) debited to Retained Earnings.

b) credited to Retained Earnings.

c) debited to Loss on Conversion of Bonds.

d) credited to Contributed Capital Accounts.

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