question_answer Q: On January 1, 2020, Booker Corp. issued $9 million of ten year bonds at 100.5 (Booker amortizes any…A: The bonds issued are recorded as bonds payable and these represent the long-term liabilities. When a…


On January 1, 2020, Booker Corp. issued $9 million of ten year bonds at 100.5
(Booker amortizes any premium/discount on a straight line basis). Each $1,000
bond is convertible into 30 shares of Booker's $7.00 par value common stock.
On January 1, 2024, holders of 70% of the bonds exercised the privilege, and
converted their bonds into Booker common stock. The journal entry to record
the conversion will include a credit to "Paid in Capital in Excess of Par - Common"
of
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Transcribed Image Text:On January 1, 2020, Booker Corp. issued $9 million of ten year bonds at 100.5
(Booker amortizes any premium/discount on a straight line basis). Each $1,000
bond is convertible into 30 shares of Booker’s $7.00 par value common stock.
On January 1, 2024, holders of 70% of the bonds exercised the privilege, and
converted their bonds into Booker common stock. The journal entry to record
the conversion will include a credit to “Paid in Capital in Excess of Par – Common”
of
question_answer Q: On January 1, 2020, Booker Corp. issued $9 million of ten year bonds at 100.5 (Booker amortizes any…A: The bonds issued are recorded as bonds payable and these represent the long-term liabilities. When a…


On January 1, 2020, Booker Corp. issued $9 million of ten year bonds at 100.5
(Booker amortizes any premium/discount on a straight line basis). Each $1,000
bond is convertible into 30 shares of Booker's $7.00 par value common stock.
On January 1, 2024, holders of 70% of the bonds exercised the privilege, and
converted their bonds into Booker common stock. The journal entry to record
the conversion will include a credit to "Paid in Capital in Excess of Par - Common"
of
expand button
Transcribed Image Text:On January 1, 2020, Booker Corp. issued $9 million of ten year bonds at 100.5
(Booker amortizes any premium/discount on a straight line basis). Each $1,000
bond is convertible into 30 shares of Booker’s $7.00 par value common stock.
On January 1, 2024, holders of 70% of the bonds exercised the privilege, and
converted their bonds into Booker common stock. The journal entry to record
the conversion will include a credit to “Paid in Capital in Excess of Par – Common”
of

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