Crow Company issued 6,000 of its $ 1,000 par value bonds for $ 1,580, providing total cash

Question:

Crow Company issued 6,000 of its $ 1,000 bonds for $ 1,580, providing total cash proceeds of $ 9,480,000. The market price of Crow’s common shares on the date it issued the bonds is $ 20 per share. It sold the bonds with 240,000 detachable warrants to acquire 240,000 shares of the company’s $ 1 for $ 20 per share. That is, each bond carries 40 warrants × 6,000 bonds = 240,000 shares. Crow has existing bonds outstanding that trade without warrants at $ 1,310. There are other Crow Company warrants outstanding that trade for $ 20 each. Prepare the journal entry to record the issuance of the bonds assuming that the proportional method is used. Common Stock
Common stock is an equity component that represents the worth of stock owned by the shareholders of the company. The common stock represents the par value of the shares outstanding at a balance sheet date. Public companies can trade their stocks on... Par Value
Par value is the face value of a bond. Par value is important for a bond or fixed-income instrument because it determines its maturity value as well as the dollar value of coupon payments. The market price of a bond may be above or below par,...