ACC 304 Course Great Wisdom / tutorialrank.com ACC 304 Course Great Wisdom / tutorialrank.com | Page 13

1) We have also attached download of Chapter 12, 13, 14,
15, 16 (download it from my account section)

Please use those as well for your finals and please either use the
question number or some data from question to search as they
usually change the company keeping the data same

2)

Convertible bonds

3) Litke Corporation issued at a premium of $5,000 a
$100,000 bond issue convertible into 2,000 shares of common
stock (par value $20). At the time of the conversion, the
unamortized premium is $2,000, the market value of the bonds
is $110,000, and the stock is quoted on the market at $60 per
share. If the bonds are converted into common, what is the
amount of paid-in capital in excess of par to be recorded on the
conversion of the bonds?