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Chapter 16 1a. UVW Corp sells a bond with face value $100,000, with a detachable warrant that gives the right of the bondholder to buy

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Chapter 16 1a. UVW Corp sells a bond with face value $100,000, with a detachable warrant that gives the right of the bondholder to buy up to 1,000 shares of Si par value common stock for $15 per share within the next 5 years. The bond's price is 98.2, and the value of the detachable warrant is $3,000. UVW sells the combined bond + warrant for a total of $100,000 cash. Show the journal entry, assuming UVW uses the proportional method. 1b. A couple years later, when UVW's stock price is $19, the warrants are exercised. Show the journal entry. 2a. On October 1, 2018, XYZ Corp also hires anpther new executive. This executive is granted 20,000 shares of restricted stock when its common stock ($1 par value) is trading at $12/share. The vesting period is also 2 years. Show the journal entry on October 1. 2b. How much is the change in total stockholders' equity at this October 1 grant date?

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