Answered step by step
Verified Expert Solution
Question
1 Approved Answer
Please Help with the Part D Riley Company issued 4,300 of its $1,000 par value bonds for $1,470, providing total cash proceeds of $6,321,000. There
Please Help with the Part D
Riley Company issued 4,300 of its $1,000 par value bonds for $1,470, providing total cash proceeds of $6,321,000. There are no bond issue costs. The market price of Riley's common shares on the date that the bonds were issued was $55 per share. The bonds were sold with 92,000 warrants to acquire 92,000 shares of the company's $2 par value common stock for $65 per share. That is, each bond carries 20 warrants. Riley has existing bonds outstanding that currently trade without warrants at $1,180. There are other Riley warrants outstanding that trade for $50 each. Assume that the fair value of the bonds is more reliable than the market value of the warrants Read the requirements Requirements 5,636 Prepare the journal entry to record issuance of the bonds assuming that the warrants are nondetachable Prepare the journal entry to record the issuance of the bonds assuming that the warrants are detachable using the proportional method Prepare the journal entry to record the issuance of the bonds assuming that the warrants are detachable using the incremental method Assuming that the incremental method is used, prepare the journal entry required to record the exercise of all warrants a. 0,000 b. e warrants are detachable using the ntries. Round any intermediary calculations to he nearest whole dollar.) c. d. 4,000 7,000 00,000 PrintDone ond Payable Requirement d. Assuming that the incremental method is used, prepare the journal entry required to record the exercise of all warrants (Record debits first, then credits. Exclude explanations from any journal entries. Round any intermediary calculations to the nearest hundredth of a percent, X.XX%. Round the amount you enter into the input cell to the nearest whole dollar.) Account Additional Paid-in Capital-Stock Warrants Cash Common Stock-Par Value Additional Paid-in Capital in Excess of Par-Common Date of Exercise 1,247,000 5,980,000Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started