Question
Kev Inc. issued $900 in principal of 5-year zero-coupon bonds with detachable warrants. Based on the price of Kev Inc.s common stock, the warrants are
Kev Inc. issued $900 in principal of 5-year zero-coupon bonds with detachable warrants. Based on the price of Kev Inc.s common stock, the warrants are worth $169. Kev Inc. received proceeds of $900 and had zero issue costs.
Kev Inc. repurchased the bonds for par approximately two years after the issue date. Its journal entry to record the repurchase of the bonds will include which one of the following line items: Debit to Discount on Bonds Payable.
Credit to Bonds Payable.
Debit to Loss on Early Retirement of Bonds.
Credit to Loss on Early Retirement of Bonds.
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