Question
Teal Corporation issued 6,000 $1,000 bonds at 97. Each bond was issued with one detachable stock warrant. After issuance, the bonds were selling separately at
Teal Corporation issued 6,000 $1,000 bonds at 97. Each bond was issued with one detachable stock warrant. After issuance, the bonds were selling separately at 96. The market price of the warrants without the bonds cannot be determined. Use the incremental method to record the issuance of the bonds and warrants.
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Fundamentals of Financial Accounting
Authors: Fred Phillips, Robert Libby, Patricia Libby, Brandy Mackintosh
4th Canadian edition
978-1259269868, 978-1259103292
