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Question:
A company issues of year bonds with detachable stock warrants. The issuance price is $ Each $ bond has warrants attached. The warrants entitle each bond holder to purchase one common share for $ per share. Shortly after issuance, the warrants trade for $ per warrant. The bonds trade at exwarrants.
Required:
Prepare the journal entry to record the issuance of the bonds.
Prepare the journal entry to record the exercise of the warrants when the market value per share is $If no entry is required for a transactionevent select No journal entry required\" in the first account field.
Prepare the journal entry to record the expiration of the warrants expire because the warrants are out of the moneyIf no entry is required for a transactionevent select No journal entry required\" in the first account field.
Intermediate Accounting
ISBN: 978-0132162302
1st edition
Authors: Elizabeth A. Gordon, Jana S. Raedy, Alexander J. Sannella