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Business, 12.03.2021 15:00 idcatall5

1. XYZ Co. has outstanding $200,000 par value Convertible Bonds. The bonds were originally issued at a $10,000 Premium. All the bonds were converted into 6,000 shares of $20 par value Common Stock. At the time of conversion, the unamortized Premium is $4,500. The market value of the bonds is $190,000, and the stock is quoted on the market at $50 per share. Prepare a journal entry to record the conversion assuming XYZ Co. uses the Book Value method.

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