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Martinez Corporation issued 5 , 8 0 0 , five year, 3 % bonds at 1 0 5 on January 1 , 2 0 2
Martinez Corporation issued five year, bonds at on January Interest is paid annually. Each $ bond carried
one detachable warrant allowing the holder to purchase common shares in Martinez at $ per share, the price at which Martinez
shares were trading on the day of the sale of the bonds. Similar straight bonds trading on the open market paid On June
of the bond holders exercised the options to buy the shares.
Prepare the journal entries to record these events. Round present value factor calculations to decimal places, eg and the final
answer to decimal places eg Credit account titles are automatically indented when the amount is entered. Do not indent manually.
Record journal entries in the order presented in the problem. If no entry is required, select No Entry" for the account titles and enter for the
amounts. List all debit entries before credit entries.
Date
Account Titles and Explanation
Debit
Credil
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