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On April 7, 2018, Marigold Corp. sold a $6250000, twenty-year, 9 percent bond issue for $6625000. Each $1000 bond has two detachable warrants, each of
On April 7, 2018, Marigold Corp. sold a $6250000, twenty-year, 9 percent bond issue for $6625000. Each $1000 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:
9% bond without warrants | $1007 |
Warrants | 21 |
Common stock | 29 |
What accounts should Marigold credit to record the sale of the bonds? (rounded to the nearest dollar)
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