Question

On July 1, 2021, an interest payment date, $149000 of Bonita Industries bonds were converted into 2970 shares of Bonita Industries common stock each having a par value of $45 and a market value of $56. There is $6600 unamortized discount on the bonds. Using the book value method, Bonita would record:___________

Answer 1

$8,750

Step-by-step explanation:

Calculation for what Bonita would record Using the book value method

Bonita Industries bonds $149,000

Less Bonita Industries converted common stock shares *Par value $133,650

(2,970 shares*$45)

Less Unamortized discount $6,600

Interest payment DATE amount $149,000

Less

AMOUNT to record $8,750

Therefore Bonita would record $8,750