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Recording the Issuance of Bonds with Detachable Warrants On December 1, Junction Company issued 6,800 of its 9%, 10-year, $1,000 par value, nonconvertible bonds
Recording the Issuance of Bonds with Detachable Warrants On December 1, Junction Company issued 6,800 of its 9%, 10-year, $1,000 par value, nonconvertible bonds with detachable stock purchase warrants at 104. Each bond carried two detachable warrants; each warrant was for one share of common stock at an option price of $15 per share. Shortly after issuance, the warrants were quoted on the market for $3 each. Fair value for the bonds without the warrants cannot be determined. Interest is payable on December 1 and June 1. Provide the entry to record issuance of the bonds by Junction Company on December 1. Question 15 Not complete Marked out of 0.63 Flag question Date Dec. 1 Account Name To record the issuance of bonds. Check > > > > Dr. 000 0 Cr. 0000
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