Crane Inc. has decided to raise additional capital by issuing $$167,000$ face value of bonds with a coupon rate of $10\%.$ In discussions

with investment bankers, it was determined that to help the sale of the bonds, detachable stock warrants should be issued at the rate

of one warrant for each $$100$ bond sold. The value of the bonds without the warrants is considered to be $$143,650,$ and the value of

the warrants in the market is $$25,350.$ The bonds sold in the market at issuance for $$154,500.$

$($a$)$ What entry should be made at the time of the issuance of the bonds and warrants? $($Credit account titles are automatically indented

when amount is entered. Do not indent manually. If no entry is required, select $"$No Entry" for the account titles and enter $0$ for the amounts.

Round intermediate calculations to $5$ decimal places, e$.$g$.1\mathrm{.}24687$ and final answers to $0$ decimal places, e$.$g$.5,125.)$

Account Titles and Explanation

Debit

Credit

$($b$1)$ Prepare the entry if the warrants were nondetachable. $($Credit account titles are automatically indented when amount is entered. Do

not indent manually. If no entry is required, select $"$No Entry" for the account titles and enter $0$ for the amounts. Round intermediate calculations

to $5$ decimal places, e$.$g$.1\mathrm{.}24687$ and final answers to $0$ decimal places, e$.$g$.5,125.$

Here are the labels for the problem:

Bond Conversion Expanse

Bonds Payable

Cash

Compensation Expanse

Cammon Stock

Convertible Preferred Stock

Debt Conversion Expanse

Discount on Bonds Payable

Gain on Repurchase

Income Summary

Incremental Cash

Insurance Expanse

Interest Expanse

Interest Payable

Interest Receivable

Liability under Stock Appreciation Plan

No Entry

Paid$-$in Capital in Excess of Par $-$ Common Stock

Paid$-$in Capital in Excess of Par $-$ Preferred Stock

Paid$-$in Capital$-$Expired Stock Options

Paid$-$in Capital$-$Stock Options

Paid$-$in Capital$-$Stock Warrants

Premium on Bonds Payable

Preferred Stock

Retained Earnings

Share Capital$-$Ordinary

Share Premium$-$Conversion Equity

Share Premium$-$Share Options

Share Premium$-$Ordinary

Unamortized Bond Issue Costs

Unearned Compensation