55. On April 7, 2025, Kegin Corporation 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 common stock for $30. The stock has a par value of $25 per share. Immediately after the sale of the bonds, the corporation's securities had the following market values: 8% bond without warrants Warrants Common stock $1,008 21 28 What accounts and amounts should Kegin credit to record the sale of the bonds? a. Bonds Payable Premium on Bonds Payable Paid-in Capital-Stock Warrants $6,000,000 232,800 127,200 b. Bonds Payable $6,000,000 Premium on Bonds Payable 48,000 Paid-in Capital-Stock Warrants 252,000 c. Bonds Payable $6,000,000 Premium on Bonds Payable 105,600 Paid-in Capital-Stock Warrants d. Bonds Payable Premiums on Bonds Payable 254,400 $6,000,000 360,000 Ans: C, LO: 2, Bloom: AP, Difficulty: Difficult, Min: 5, Reflective, AICPA BC: None, AICPA AC: Measurement, Interpretation and Analysis, AICPA PC: None, IMA: Reporting and Control: Financial Recordkeeping, IFRS: None Solution: (6,000 x $1,008) + (12,000 x $21) = $6,300,000; $6,048,000 x $6,360,000 $6,105,600, bonds: $6,000,000; $105,600 premium; $6,360,000 - $6,000,000-$105,600 $254,400. $6,300,000