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I have posted something similar to this earlier but the answer was wrong. Those are the right accounts, it did not call for a seperate
I have posted something similar to this earlier but the answer was wrong.
Those are the right accounts, it did not call for a seperate Bond issue cost expense account, Im assuming that it should be calculated in cash or premium already So i am only missing numbers
The preimum isnt Face value - Fair value - Paid in warrant. I've already tried that or just Face value - Fair Value
Your answer is partially correct. Try again. On September 1, 2017, Pharoah Company sold at 104 (plus accrued interest) 5,880 of its 8%, 10-year, $1,000 face value, nonconvertible bonds with detachable stock warrants. Each bond carried two detachable warrants. Each warrant was for one share of common stock at a specified option price of $13 per share. Shortly after issuance, the warrants were quoted on the market for $3 each. No fair value can be determined for the Pharoah Company bonds. Interest is payable on December 1 and June 1. Bond issue costs of $24,100 were incurred. Prepare in general journal format the entry to record the issuance of the bonds. (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.) Account Titles and Explanation Debit Credit Cash Bond: Pavabla 598000O Bond Interest Expense 117600 Premium on Bonds Payable Paid-in Capital-Stock Warrants 35280 Click if you would like to Show Work for this question: Open Show WorkStep by Step Solution
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