Question: On May 1 2010 Barkley Company issued 3 000 1 000 bonds

On May 1, 2010, Barkley Company issued 3,000 €1,000 bonds at 102. Each bond was issued with one detachable share warrant. The fair value of the bonds on May 1, 2010, was €2,940,000.

Instructions
(a) Prepare the entry to record the issuance of the bonds and warrants.
(b) Assume the same facts as part (a), except that the warrants had an estimated fair value of €20. Prepare the entry to record the issuance of the bonds and warrants.


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  • CreatedJune 17, 2013
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