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recorded as a deferred charge to be amortized over the term of the bonds? Question 11 The primary purpose of a quasi-reorganization is to give a corporation the opportunity to Question 12 Clay Corp. had $600,000 of convertible 8% bonds outstanding at June 30, 2005. Each $1,000 bond was convertible into 10 shares of Clay's $50 par value common stock. On July 1, 2005, the interest was paid to bondholders and the bonds were converted into common stock, which had a fair market value of $75 per share. The unamortized premium on these bonds was $12,000 at the date of conversion. Under the book value method, this conversion increased the following elements of the stockholders' equity section by Question 13 On December 31, 2003, Moss Co. issued $1,000,000 of 11% bonds at 109. Each $1,000 bond was issued with 50 detachable stock warrants, each of which entitled the bondholder to purchase one share of $5 par common stock for $25. Immediately after issuance, the market value of each warrant was $4. On December 31, 2003, what amount should Moss record as discount or premium on issuance of bonds? Question 14