Cruise, Inc. has $380,000 convertible, par value bonds outstanding on January 1. The bonds were originally
issued a par value. The bonds are to be converted to common stock of the Corporations. The bondholders
will receive 90,000 shares of $3.25 par value common stock of the Corporation at the time of conversion.
Prepare the journal entry Cruise, Inc. will record in its accounting records on the January 1 conversion date.
| Date | Description | Debit | Credit |
|---|---|---|---|
| 01/01 | |||
| 01/01 | |||
| 01/01 | |||
| 01/01 | to record the conversion of bonds. | ||