Question
On May 1, 2020, Monty Company issued1,900$1,000bonds at102. Each bond was issued with one detachable stock warrant. Shortly after issuance, the bonds were selling at97,
On May 1, 2020, Monty Company issued1,900$1,000bonds at102. Each bond was issued with one detachable stock warrant. Shortly after issuance, the bonds were selling at97, but the fair value of the warrants cannot be determined.
(a)Prepare the entry to record the issuance of the bonds and warrants.
(b)Assume the same facts as part (a), except that the warrants had a fair value of $37. Prepare the entry to record the issuance of the bonds and warrants.
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Auditing A Practical Approach
Authors: Robyn Moroney, Fiona Campbell, Jane Hamilton
4th Edition
9780730382645
