D is corrent. Under both the book value and market value methods of accounting for bond conversions, the bonds payable and any related premium or discount must be removed from the accounting records. The choice between the two methods, however, does not affect the removal of the bonds payable balance or the premium balance from the accounts.
A is incorrect. Under both the book value and market value methods of accounting for bond conversions, the bonds payable and any related premium or discount must be removed from the accounting records. The choice between the two methods, however, does not affect the removal of the bonds payable balance or the premium balance from the accounts.
B is incorrect. Under both the book value and market value methods of accounting for bond conversions, the bonds payable and any related premium or discount must be removed from the accounting records. The choice between the two methods, however, does not affect the removal of the bonds payable balance or the premium balance from the accounts.
C is incorrect. Under both the book value and market value methods of accounting for bond conversions, the bonds payable and any related premium or discount must be removed from the accounting records. The choice between the two methods, however, does not affect the removal of the bonds payable balance or the premium balance from the accounts.
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