On April 7, 2018, Kegin Corporation sold a $6,000,000, twenty-year, 8 percent bond issue for $6,360,000. Each

Question:

On April 7, 2018, Kegin sold a $6,000,000, twenty-year, 8 percent bond issue for $6,360,000. Each $1,000 bond has two detachable warrants, each of which permits the purchase of one share of the corporation's for $30. The stock has a of $25 per share. Immediately after the sale of the bonds, the corporation's securities had the following market values:
8% bond without warrants............................$1,008
Warrants......................................................21
Common stock...............................................28
What accounts should Kegin credit to record the sale of the bonds?
Bonds Payable....................................$6,000,000
Premium on Bonds Payable........................360,000
Bonds Payable ...................................$6,000,000
Premium on Bonds Payable........................48,000
Paid-in Capital-Stock Warrants................252,000
Bonds Payable .................................$6,000,000
Premium on Bonds Payable.....................105,600
Paid-in Capital-Stock Warrants...............254,400
Bonds Payable.................................$6,000,000
Premium on Bonds Payable.....................232,800
Paid-in Capital-Stock Warrants...............127,200
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... Corporation
A Corporation is a legal form of business that is separate from its owner. In other words, a corporation is a business or organization formed by a group of people, and its right and liabilities separate from those of the individuals involved. It may... 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,...