On September 1, 2025, Sands Company sold at 104 (plus accrued interest) 4,000 of its 9%, 10-year,
Question:
On September 1, 2025, Sands Company sold at 104 (plus accrued interest) 4,000 of its 9%, 10-year, $1,000 face value, nonconvertible bonds with detachable stock warrants. Each bond carried two detachable warrants. Each warrant was for one share of common stock at a specified option price of $15 per share. Shortly after issuance, the warrants were quoted on the market for $3 each. No fair value can be determined for the Sands Company bonds. Interest is payable on December 1 and June 1.
Instructions
Prepare in general journal format the entry to record the issuance of the bonds.
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September 1 2025 Cash 4160000 90000 Bonds Payable 4000 X 1000 Pr...View the full answer
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Related Book For 
Intermediate Accounting
ISBN: 9781119790976
18th Edition
Authors: Donald E. Kieso, Jerry J. Weygandt, Terry D. Warfield
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