Question
E16-9B (Issuance of Bonds withWarrants) On May 31, 2007, Core Company issued 1,000, 14%, 10-year $1,000bonds at 105. Each bond was issued with one detachable
E16-9B (Issuance of Bonds withWarrants)
On May 31, 2007, Core Company issued 1,000, 14%, 10-year $1,000bonds at 105. Each bond was issued with one detachable stockwarrant. Shortly after issuance, the bonds were selling at 102, butthe market value of the warrants cannot be determined.Instructions
(a) Prepare the entry to record the issuance ofthe bonds and warrants.
(b) Assume the same facts as part (a), exceptthat the warrants had a fair value of $8. Prepare the entry torecord the issuance of the bonds and warrants.
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Fraud examination
Authors: Steve Albrecht, Chad Albrecht, Conan Albrecht, Mark zimbelma
4th edition
538470844, 978-0538470841
