Answered step by step
Verified Expert Solution
Question
1 Approved Answer
Please show clean work thank you Teal Inc. has decided to raise additional capital by issuing $178,000 face value of bonds with a coupon rate
Please show clean work thank you
Teal Inc. has decided to raise additional capital by issuing $178,000 face value of bonds with a coupon rate of 10%. In discussions with investment bankers, it was determined that to help the sale of the bonds, detachable stock warrants should be issued at the rate of one warrant for each $100 bond sold. The value of the bonds without the warrants is considered to be $142,200, and the value of the warrants in the market is $15,800. The bonds sold in the market at issuance for $154.500. (a) What entry should be made at the time of the issuance of the bonds and warrants? (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 Ofor the amounts. Round intermediate calculations to 5 decimal ploces, eg. 1.24687 and final answers to 0 decimal ploces, eg. 5, 125.) (b1) Prepare the entry if the warrants were nondetachable. (Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the occount titles and enter Of for the amounts Round intermediate calculations to 5 decimal places, eg. 1.24687 and final answers to O decimal places, es. 5.125 Step 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