Answered step by step
Verified Expert Solution
Question
1 Approved Answer
Drop down options: Could you please show step by step findings for this? Thank you! Recording Entries for Bonds with Warrants Harley Corporation issued $75,000
Drop down options:
Could you please show step by step findings for this? Thank you!
Recording Entries for Bonds with Warrants Harley Corporation issued $75,000 of 6%, 10-year, nonconvertible bonds with detachable stock purchase warrants. Each $1,000 bond carried 20 detachable warrants, each of which was for one share of Harley common stock, par $20, at a specified exercise price of $60. The bonds sold at 102 including the warrants (no bond price without warrants was available), and immediately after the date of issuance, the detachable stock purchase warrants were selling at $4 each. All indicated transactions occurred in the same fiscal year. Required a. Provide the entry for the issuer at the date of issuance of the bonds. b. Provide the entry for Harley assuming subsequent tender of all of the warrants by the investor for exercise at the specified exercise price. At this date, the stock was selling at $75 per share. Note: List multiple debits or credits (when applicable) in alphabetical order. Account Name Dr. Cr. > a. > > > b. > Cash Inventory Equipment Land Deferred Revenue Bonds Payable Discount on Bonds Payable Discount and Debt Issuance Costs Premium on Bonds Payable Fair Value Adjustment-Bonds Payable Note Payable Discount on Note Payable Premium on Note Payable Fair Value Adjustment-Note Payable Interest Payable Common Stock Fair Value Adjustment-Bonds Payable Note Payable Discount on Note Payable Premium on Note Payable Fair Value Adjustment-Note Payable Interest Payable Common Stock Paid-in Capital in Excess of ParCommon Stock Paid-in CapitalStock Warrants Retained EarningsPrior Period Adjustment Debt Conversion Expense Interest Expense Loss on Redemption of Bonds Gain on Redemption of Bonds Unrealized Gain or Loss-Income Unrealized Gain or Loss-OCIStep by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started