Marigold corp. issued at a premium of $9200 a $198000 bond issue convertible into 4800 shares of common stock (par value $20). at the time of the conversion, the unamortized premium is $3600, the market value of the bonds is $218000, 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?
prepare the journal entry to record the conversion of the bonds to common stock.

Explanation:

The journal entry is shown below:

Bonds payable A/c Dr $198,000

Premium on bonds payable A/c Dr $3,600

         To Common stock A/c $96,000

         To Paid in capital in excess of par - Common stock A/c $105,600

(Being the conversion of bonds is recorded)

The computation is shown below:

For Common stock:

= 4,800 shares × $20

= $96,000

And, the remaining balance is credited to paid in capital in excess of par

the correct answer is economics is a game without winners or losers.

unlike sports or games economic is a game without losers or winner rather it is a game where everyone wins. parties of business doing businesses exchange money with each other and hence exchange is done on the basis of goods. one party takes the goods and other sales it so there is winner on both sides. each party values more highly the good it gets than the good it gives up. both sides exchange only because both intend to increase their value. so there is no concept of lose or win.

answer; standing committee;