Carrington Industries Converts $200,000 of Par Value Bonds,with a Carrying

Multiple Choice

Carrington Industries converts $200,000 of par value bonds,with a carrying value of $100,000,into 50,000 shares of $1 par value common stock..How would the company record this transaction?

A) Debit Bonds Payable for $200,000 and credit Cash for $100,000.
B) Debit Bonds Payable for $200,000,credit Common Stock for $50,000,and credit Paid-In Capital in Excess of Par Value for $150,000.
C) Debit Bonds Payable for $200,000 and credit Common Stock for $200,000.
D) Debit Common Stock for $50,000,credit Paid-In Capital in Excess of Par Value for $150,000,and credit Bonds Payable for $200,000.
E) Debit Bonds Payable for $50,000 and credit Common Stock for $50,000.