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3) Sherwood, Inc. issued bonds with detachable stock warrants, as follows: Par value of bonds $ 2,000,000 Stated interest rate on bonds 4% Two detachable
3) Sherwood, Inc. issued bonds with detachable stock warrants, as follows: Par value of bonds $ 2,000,000 Stated interest rate on bonds 4% Two detachable stock warrants are issued with each $1,000 bond sold. At issuance, the bonds sold for $ 1,860,000 At issuance, the value of the bonds without the warrants: 1,536,000 At issuance, the value of the warrants: 384,000 REQUIRED: a) Determine the amount debited to the Discount on Bond Payable account at the time of issuance. b) Determine the amount credited to the Paid-in Capital - Stock Warrants account at the time of issuance
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