On july 1 2008 an interest payment date 30000 of young co


On July 1, 2008, an interest payment date, $30,000 of Young Co. bonds were converted into 600 shares of Young Co. common stock, each share having a par value of $45 and a market value of $54. There was $1,200 of unamortized discount on the bonds (after recording and paying the interest). Using the book value method conversion, Young would record

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a) no change in paid-in capital in excess of par

b) an $1,800 increase in paid-in capital in excess of par

c) an $2,400 increase in paid-in capital in excess of par

d) an $3,600 increase in paid in capital in excess of par

e) none of the above

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Financial Accounting: On july 1 2008 an interest payment date 30000 of young co
Reference No:- TGS01006288

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