Final answer:
Without specific details on the applicable portion of the unamortized premium for the $500,000 of bonds being converted, we can only say that the Paid-In Capital from conversion would be credited with the difference between the carrying value of the bonds and the common stock credited at par value. However, with the given information, we are unable to calculate the exact number to be credited.
Step-by-step explanation:
When Laker, Inc. converted bonds with a face amount of $500,000 into 20,000 shares of $20 par common stock, the accounting entry to record the conversion would require crediting the common stock account and the Paid-In Capital from conversion account.
The common stock account is credited based on the par value of the stock issued, which is 20,000 shares × $20 par value per share, equal to $400,000. The carrying value of the bonds is the face value plus any unamortized premium; in this case, however, the unamortized balance is not mentioned specifically for the $500,000 portion being converted, so we only have the total premium, which applies to the overall $1,000,000 face value of all bonds. Ignoring this since the question does not state the divisible amount and assuming the book value is equivalent to the face value for the conversion portion, the entry to the Paid-In Capital from conversion account would be the difference between the carrying amount of the bonds converted and the common stock credited. Since we need more specific information to answer fully, and we can't presume the entire $30,000 applies only to the $500,000 being converted, we would likely need additional information to determine the exact number to be credited to Paid-In Capital from conversion.