BE14-27. Warrants. [Learning Objective 8] Crow Company issued 6,000 of its

$1,000

par\ value bonds for

$1,580

, providing total cash proceeds of

$9,480,000

. The market price of\ Crow's common shares on the date that it issued the bonds was

$20

per share. It sold the\ bonds with 240,000 detachable warrants to acquire 240,000 shares of the company's

$1

par\ value common stock for

$20

per share. That is, each bond carried\ 40 warrants

\\\\times 6,000

bonds

=240,000

shares . Crow had existing bonds outstanding that\ trade without warrants at

$1,310

. There were other Crow Company warrants outstanding that\ traded for

$20

each. Prepare the journal entry to record the issuance of the bonds assuming\ that the proportional method is used.

BE14-27. Warrants. [Learning Objective 8] Crow Company issued 6,000 of its $1,000 par value bonds for $1,580, providing total cash proceeds of $9,480,000. The market price of Crow's common shares on the date that it issued the bonds was $20 per share. It sold the bonds with 240,000 detachable warrants to acquire 240,000 shares of the company's $1 par value common stock for $20 per share. That is, each bond carried 40 warrants 6,000 bonds =240,000 shares . Crow had existing bonds outstanding that trade without warrants at $1,310. There were other Crow Company warrants outstanding that traded for $20 each. Prepare the journal entry to record the issuance of the bonds assuming that the proportional method is used