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8 D F H On January 1st 2020 the Big Company issued (sold) 100 $1000 8% bonds sold for a 1150. Each of the bonds
8 D F H On January 1st 2020 the Big Company issued (sold) 100 $1000 8% bonds sold for a 1150. Each of the bonds contained a detachable warrant that can be used to purchase a share of Big stock for $50. The value of each warrant is $5. Required: a) make the journal entry when the bonds with the warrants are issued b) make the journal entry when the warrants are redeemed and the stock is issued c) When the first interest payment is made July 1 2020 will interest expense be greater than, equal to, or less than the amount of the interest check? d) in total how much interest will Big pay on this bond issue
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