Question: If twenty (20) $1,000 convertible bonds with a carrying rate of dollar 25,000 are converted into 3,000 shares of dollar 5 par value common stock, the journal entry to record the conversion is
[A] Bonds Payable ........................... 20,000
Premium on Bonds Payable ................ 5,000
Common Stock ......................... 25,000
[B] Bonds Payable ........................... 25,000
Discount on Bonds Payable ............ 5,000
Common Stock ......................... 15,000
Paid-in Capital in Excess of Par ..... 5,000
[C] Bonds Payable ........................... 25,000
Common Stock ......................... 25,000
[D] Bonds Payable ........................... 20,000
Premium on Bonds Payable ................ 5,000
Common Stock ......................... 15,000
Paid-in Capital in Excess of Par .... 10,000