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On April 7, 2025, Sunland Corporation sold a $6200000, twenty-year, 8 percent bond issue for $6572000. Each $1000 bond has two detachable warrants, each
On April 7, 2025, Sunland Corporation sold a $6200000, twenty-year, 8 percent bond issue for $6572000. 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: 8% bond without warrants Warrants Common stock $1008 20 28 What accounts and amounts should Sunland credit to record the sale of the bonds? Bonds Payable Premium on Bonds Payable $6200000 246580 Paid-in Capital-Stock Warrants 125420 Bonds Payable Premium on Bonds Payable $6200000 47616 Paid-in Capital-Stock Warrants 249984 Bonds Payable Premium on Bonds Payable $6200000 121160 Paid-in Capital-Stock Warrants 250840 Bonds Payable $6200000 Premium on Bonds Payable 372000
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