Question

On July 1, 2021, an interest payment date, $148000 of Coronado Industries bonds were converted into 2980 shares of Coronado Industries common stock each having a par value of $45 and a market value of $56. There is $5000 unamortized discount on the bonds. Using the book value method, Coronado would record

Answer 1

Step-by-step explanation:

Value = Value of Bonds - Conversion Value - Unamortized Discount

148,000 - (2980 x 45) - 5000

$8900

Answer 2

Value = bond value - conversions value - unamortized discount

= 148000- (2980×45)-5000

=$8,900