Carla Vista Capital Ltd. issued 450 $1,000 bonds at 103. Each bond was issued with 10 detachable stock warrants. After issuance, similar bonds were sold at 98, and the warrants had a fair value of $2.50

 

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Record the issuance of the bonds and warrants assuming that Carla Vista Capital follows IFRS. (Credit account titles are automatically indented when the amount manually. If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts.) entered. Do not indent Account Titles and Explanation Debit Credit SHOW LIST OF ACCOUNTS LINK TO TEXT LINK TO TEхт (i) Assuming that Carla Vista Capital follows ASPE (residual value method), record the issuance of the bonds and warrants assuming that the debt is the more easily measurable component. (Credit account titles are automatically indented when the amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter O for the amounts.) Account Titles and Explanation Debit Credit (ii) Assuming that Carla Vista Capital follows ASPE (residual value method), record the issuance of the bonds and warrants assuming that the equity is the more easily measurable component. (Credit account titles are automatically indented when the amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts.) Account Titles and Explanation Debit Credit Record the issuance of the bonds and warrants assuming that Carla Vista Capital follows IFRS. (Credit account titles are automatically indented when the amount manually. If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts.) entered. Do not indent Account Titles and Explanation Debit Credit SHOW LIST OF ACCOUNTS LINK TO TEXT LINK TO TEхт (i) Assuming that Carla Vista Capital follows ASPE (residual value method), record the issuance of the bonds and warrants assuming that the debt is the more easily measurable component. (Credit account titles are automatically indented when the amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter O for the amounts.) Account Titles and Explanation Debit Credit (ii) Assuming that Carla Vista Capital follows ASPE (residual value method), record the issuance of the bonds and warrants assuming that the equity is the more easily measurable component. (Credit account titles are automatically indented when the amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts.) Account Titles and Explanation Debit Credit

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Accounting Titles and Explanation Debit Credit Cash 463500 Bonds Payable 441000 ... View the full answer