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On September 1, 2020, Skysong Company sold at 104 (plus accrued interest) 3,600 of its 8%, 10-year, $1,000 face value, nonconvertible bonds with detachable stock
On September 1, 2020, Skysong Company sold at 104 (plus accrued interest) 3,600 of its 8%, 10-year, $1,000 face value, nonconvertible bonds with detachable stock warrants. Each bond carried two detachable warrants. Each warrant was for one share of common stock at a specified option price of $14 per share. Shortly after issuance, the warrants were quoted on the market for $2 each. No fair value can be determined for the Skysong Company bonds. Interest is payable on December 1 and June 1. Prepare in general journal format the entry to record the issuance of the bonds. (Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter O for the amounts.) Account Titles and Explanation Cash Bonds Payable Premium on Bonds Payable Paid-in Capital-Stock Warrants eTextbook and Media List of Accounts Save for Later Debit 3781900 Credit 3600000 122400 21600 Attempts: 2 of 5 used Submit
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