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The following information is the same as the previous question. A Company issued a bond payable with detachable warrants on the interest payment date as
The following information is the same as the previous question. A Company issued a bond payable with detachable warrants on the interest payment date as follows. Bond payable ($1,000 par value; 400 bonds) $400,000 Coupon rate 4.70% Bond issue price $414,000 Fair value of the bonds after issuance $390,000 Term 10 years Number of detachable warrants per bond Fair value of the warrants after issuance $2.00 Stock purchase price $15.00 Warrants exercised 5,000 1 warrant = 1 share of $1 par value stock What is the credit to additional paid in capital at the time the warrants are exercised on June 30, 20X1? 50
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