A Bond Issue of $50,000 with a Carrying Value of $49,000

Multiple Choice

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