Question: On September 1 2010 Lin Company sold at 104 plus

On September 1, 2010, Lin Company sold at 104 (plus accrued interest) 30,000 of its 8%, 10-year, ¥10,000 face value, non-convertible bonds with detachable share warrants. Each bond carried two detachable warrants. Each warrant was for one ordinary share at a specified option price of ¥1,500 per share. The net present value of bonds is determined to be ¥290,000,000. Interest is payable on December 1 and June 1.

Prepare in general journal format the entry to record the issuance of the bonds.

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  • CreatedJune 17, 2013
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