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$700,000 of bonds with detachable stock warrants were issued for $711,000. Each $1000 bond carried seven warrants which allowed for the purchase of 7 shares
- $700,000 of bonds with detachable stock warrants were issued for $711,000. Each $1000 bond carried seven warrants which allowed for the purchase of 7 shares of common stock for $38 each. Shortly after the time of issuance, the bonds without the warrants were selling at 99; the warrants were selling at $5 each. For the journal entry for the issuance of the bonds with the detachable stock warrants, how much is recorded for the stock warrants?
- $24,500
- $150,578
- $24,278
- zero
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Auditing Cases An Active Learning Approach
Authors: Mark S. Beasley, Frank A. Buckless, Steven M. Glover, Douglas F. Prawitt
2nd Edition
0130674842, 978-0130674845
