Answer:
Face Value of Bonds = $100000
Unamortized Premium = $2000
Conversion of Equity Shares = 2000 * $20 = $40,000
Paid in Capital in Excess of Par = $100000 + $2000 - $40000 = $62000
Journal Entries
Account Title & Explanation Debit Credit
Bond Payable Account $100000
Unamortized Premium $2000
Common Stock $40000
Paid in Capital in Excess of par $62000
(To record conversion of Bonds)
A. is the only appropriate answer.
Answer:
The answer is A
Explanation:
An increase in an effective maximum legal price will do what to prices and quantities sold in a market?
A maximum legal price is an effective tool to control prices. Usually, the price is below its equilibrium. An increase in the maximum legal price will increase prices and the quantities sold will decrease. When prices go up, companies offer more quantities of a product, but consumers demand less.