Question
On May 1, 2021, Edrick Company issued P4M, 20 year, 10% bonds for P4,240,000. Each P1,000 bond had a detachable warrant eligible for the purchase
On May 1, 2021, Edrick Company issued P4M, 20 year, 10% bonds for P4,240,000. Each P1,000 bond had a detachable warrant eligible for the purchase of one share of Edricks P50 par ordinary share for P60. Immediately after the bonds were issued Edricks had the following market value
Bonds without warrants 1,040
Warrant 20
Ordinary share 55
Required,
A. Determine the cost assigned to warrants.
B. Premium to be recognized
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Accounting For Casinos And Gaming
Authors: Steven M. Bragg
3rd Edition
1642210870, 978-1642210873
