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Assume Bobo Company issued 100, 000 rights allowing the holder(s) to acquire common shares at an acquisition price of $20 per share, which is
Assume Bobo Company issued 100, 000 rights allowing the holder(s) to acquire common shares at an acquisition price of $20 per share, which is the current market price of the common shares. It takes two rights to acquire a share. The company received $10, 000 for the rights. At the issuance date the following will be recorded: Only a memorandum entry. Cash, debit, $10, 000, and contributed capital - stock rights outstanding, credit, $10, 000. O Cash, credit, $10, 000, and common shares, debit, $10, 000. Cash, debit, $10, 000, and common shares, credit, $10, 000.
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