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On June 1, 2020, Carson Co. issued $2,000,000 of 6%, 20 year bonds at 102. Twenty detachable stock warrants entitling the holder to purchase for
On June 1, 2020, Carson Co. issued $2,000,000 of 6%, 20 year bonds at 102. Twenty detachable stock warrants entitling the holder to purchase for $45 one share of Carson Co. $10 par value common stock were attached to each $1,000 bond. The bonds without the warrants would sell at 98. On June 1, 2020, the fair value of Carson Co. common stock was $40 per share and the fair value of the warrants was $4. prepare journal entires to record bond issuamce
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