Multiple Choice Question 54

On April 7, 2018, Kegin Corporation sold a $6,000,000, twenty-year, 8 percent bond issue for $6,360,000. Each $1,000 bond has two detachable warrants, each of which permits the purchase of one share of the corporation's common stock for $30. The stock has a par value of $25 per share. Immediately after the sale of the bonds, the corporation's securities had the following market values:

8% bond without warrants	$1,008
Warrants	21
Common stock	28

What accounts should Kegin credit to record the sale of the bonds?

Bonds Payable	$6,000,000
Premium on Bonds Payable	360,000

Bonds Payable	$6,000,000
Premium on Bonds Payable	48,000
Paid-in CapitalStock Warrants	252,000

Bonds Payable	$6,000,000
Premium on Bonds Payable	105,600
Paid-in CapitalStock Warrants	254,400

Bonds Payable	$6,000,000
Premium on Bonds Payable	232,800
Paid-in CapitalStock Warrants	127,200