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Are you talking about the issuing entity?
You are going to have to make a journal entry.
Can you give me the details of the transaction?
Plug in some numbers; your titles have run together.
Basically, if there's been no payment of interest to the note holders, you're just going to reclass everything to Capital Stock & paid in capital....... The split is arbitrary unless there's a par to the stock; if so, use that for the stock & the rest goes to paid in capital.
I don't know why it was put in paid in capital in the first place if they were actually convertible notes.
Were they paying interest to the "bond" holders?
You need to determine is the Capital Stock has a par or stated value.
If so, that's what you record the stock at and leave the rest in Paid in Capital
If no par or stated value, you can either put everything into the Capital Stock account,
or split it based upon some arbitrary amount like 10 cents or 1 cent a share; it has no affect on anything if it's no par.
Personally, in this situation, I'd put everything you have in Paid-In-Capital into the Capital Stock account.
What was in the stock account previously?
Was there anything in Paid in Capital other than the Convertible Note which didn't belong in there in the first place?
Or did they never record any outstanding Capital Stock?
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