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Unformatted text preview: Name __________________________________ ACG 302 Quiz Chapter 16 Spring 2012 1. The conversion of bonds is most commonly recorded by the A) incremental method. B) proportional method. C) market value method. D) book value method. 2. On July 1, 2012, an interest payment date, $80,000 of Parks Co. bonds were converted into 1,600 shares of Parks Co. common stock each having a par value of $45 and a market value of $54. There is $3,200 unamortized discount on the bonds. Using the book value method, Parks would record A) no change in paid-in capital in excess of par. B) a $4,800 increase in paid-in capital in excess of par. C) a $9,600 increase in paid-in capital in excess of par. D) a $6,400 increase in paid-in capital in excess of par. 3. On December 1, 2012, Lester Company issued at 103, four hundred of its 9%, $1,000 bonds. Attached to each bond was one detachable stock warrant entitling the holder to purchase 10 shares of Lester's common stock. On December 1, 2012, the market value of the bonds, without the stock warrants, was 95, and the market value of each stock...
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This document was uploaded on 03/08/2012.
- Spring '09