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On April 1, 2021, ABC Corporation issued $340,000 of 15% bonds at 107. Each $1,000 bond was sold with 40 detachable stock warrants, each permitting
On April 1, 2021, ABC Corporation issued $340,000 of 15% bonds at 107. Each
$1,000 bond was sold with 40 detachable stock warrants, each permitting the investor to purchase one share of common stock for $18. On that date, the market value of the common stock was $16 per share and the market value of each warrant was $2.
REQUIRED ;
prepare journal entry
prepare amortization sheet
Ex. 6-Bonds issued with detachable warrants - Homework problem On April 1, 2021, ABC Corporation issued $340,000 of 15% bonds at 107. Each $1,000 bond was sold with 40 detachable stock warrants, each permitting the investor to purchase one share of common stock for $18. On that date, the market value of the common stock was $16 per share and the market value of each warrant was $2. Required: Prepare the journal entry for the issue of the bonds.
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Accounting Tools for business decision making
Authors: kimmel, weygandt, kieso
4th Edition
978-0470117262, 9780470534786, 470117265, 470534788, 978-0470095461
