A bond issue of $50,000 with a carrying value of $49,000 is converted into $10 par value common stock at the rate of fifty shares for each $1,000 bond. The entry to record the conversion of bonds would be:
a. Bonds Payable 50,000
Loss on Retirement of Bonds 1,000
Unamortized Bond Discount 1,000
Common Stock 50,000
b. Bonds Payable 50,000
Common Stock 25,000
Additional Paid-In Capital 25,000
c. Bonds Payable 50,000
Common Stock 25,000
Additional Paid-In Capital 24,000
Unamortized Bond Discount 1,000
d. Bonds Payable 49,000
Unamortized Bond Discount 1,000
Common Stock 25,000
Additional Paid-In Capital 25,000
C
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Lafayette, Inc was incorporated on January 1, 2014
Lafayette issued 15,000 shares of common stock and 800 shares of preferred stock on that date. The preferred stock is cumulative, $100 par, with an 12% dividend rate. Lafayette has not paid any dividends yet. In 2017, Lafayette had its first profitable year, and on November 1, 2017, Lafayette declared a total dividend of $44,000. What is the total amount that will be paid to common stockholders? A) $9,600 B) $38,400 C) $5,600 D) $44,000
In first-degree price discrimination, the seller charges less to buyers of larger volumes
Indicate whether the statement is true or false