Bonds were converted into common stock by the bondholders

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On January 1, 2019; ½ of the bonds were converted into common stock by the bondholders. Each bond was converted into 50 shares of ACME $1 par stock when the stock was selling for $44 per share. On 1/1/19 the value in ‘discount on bonds payable’ was $24,000.

Make the journal entry ACME makes on January 1, 2019 when ½ of the bonds are converted into stock.

On January 1, 2020 ACME retired the remaining ½ of the bonds buying them at 99. On 1/1/20 the value in ‘discount on bonds payable’ was $16,000.

Make the journal entry ACME makes on January 1, 2020 when the other ½ of the bonds are retired by ACME.

Reference no: EM13907030

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