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On January 1st 2017 the Bilbo Company issued (sold) $100,000 of 8% semi-annual 10 year bonds for S 124,000. Each of these 100 bonds came

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On January 1st 2017 the Bilbo Company issued (sold) $100,000 of 8% semi-annual 10 year bonds for S 124,000. Each of these 100 bonds came with 4 detachable warrants. Each warrant allowed the holder the right to purchase 10 shares of Bilbo ($5 par) common stock at $45 per share. At the time the bonds were issued each warrant was determined to be worth $100 each set. a) make the journal entry Bilbo makes on January 1st when it sells the bonds with the detachable warrants. b) Since the difference is not material, Bilbo has elected to use the straight-line method to amortize the interest on their bonds make the journal entry Bilbo makes on July 1st 2017 when they make the first interst payment c) On October 1st, all of the warrants are redeemed and Bilbo issues the stock connected with the warrants make the journal entry Bilbo makes when it issues the stock d) Make the adjusting entry Bilbo needs on December 31st 2017 (remember the interst isn't paid until January 1st) e) make the entry Bibo makes on January 1st when it makes the second interst payment )On January 2nd Bilbo retires all of the bonds by paying $100,000. Make the necessary entry for Bilbo at the retirement of the bonds

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