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The Edmonton Company is issuing $50,000 face value, 10% bonds with detachable stock warrants. The value of the bonds without the warrants is $40,000 and
The Edmonton Company is issuing $50,000 face value, 10% bonds with detachable stock warrants. The value of the bonds without the warrants is $40,000 and the value of the warrants is a total of $10,000. The bonds with the warrants sold for $55,000. The journal entry to record the sale will include: Select one: a. A debit to Discount on Bonds Payable for $5,000 O b. A debit to Discount on Bonds Payable for $10,000 O c. A credit to Premium on Bonds Payable for $5,000 X d. A credit to Paid-in-Capital Stock Warrants for $11,000 e. A credit to Paid-in-Capital Stock Warrants for $5,000 The correct answer is: A credit to Paid-in-Capital Stock Warrants for $11,000
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