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Please answer the 2nd question Problem One [a]: Bonds with Detachable Stock Purchase Warrants On January 1, CCC Corp issued 100 of 6%5-year nonconvertible bonds
Please answer the 2nd question Problem One [a]: Bonds with Detachable Stock Purchase Warrants On January 1, CCC Corp issued 100 of 6%5-year nonconvertible bonds with nondetachable stock purchase warrants. Each bond carried 10 warrants, each of which was for one share of CCC common stock, par value $1, at a specified option price of $40 per share. The bonds (including the warrants) sold at 102 . No bond price without warrants was available. Required: 1. Prepare the entry at the date of issuance of the bonds. 2. Prepare the entry at the date of issuance of the bonds assuming instead that the warrants are detachable. Immediately after the date of issuance, the detachable stock purchase warrants were selling at $5 each
Please answer the 2nd question
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