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Question 16 Not complete Marked out of 0.63 Flag question Recording Entries for Bonds with Warrants Harley Corporation authorized $112,500 of 6%, 10-year, nonconvertible
Question 16 Not complete Marked out of 0.63 Flag question Recording Entries for Bonds with Warrants Harley Corporation authorized $112,500 of 6%, 10-year, nonconvertible bonds with detachable stock purchase warrants. Each $1,000 bond carried 20 detachable warrants, each of which was for one share of Harley common stock, par $20, at a specified exercise price of $60. The bonds sold with the warrants at 102 (no bond price without warrants was available). Immediately after the date of issuance, the detachable stock purchase warrants were selling at $4 each. All transactions occurred in the same fiscal year. a. Provide the entry for the issuer at the date of issuance of the bonds.b. Provide the entry for the issuer assuming exercise of all of the warrants by the investors at the specified exercise price. At this date, the stock was selling at $75 per share. a. Account Name To record the issuance of bonds. b. To record the tender of warrants. Dr. > > > > 0000 Cr. 0 0 00 0000 0 000
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