Concord Corporation issued 4,300, five year, 4% bonds at 106 on January 1, 2023. Interest is...

 

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Concord Corporation issued 4,300, five year, 4% bonds at 106 on January 1, 2023. Interest is paid annually. Each $1,000 bond carried one detachable warrant allowing the holder to purchase 100 common shares in Concord at $9 per share, the price at which Concord shares were trading on the day of the sale of the bonds. Similar straight bonds trading on the ope market paid 5%. On June 30, 2023, 860 of the bond holders exercised the options to buy the shares. Prepare the journal entries to record these events. (Round present value factor calculations to 5 decimal places, e.g. 1.25124 and the final answer to O decimal places eg. 58,971. Credit account titles are automatically indented when the amount is entered. Do not indent manually. Record journal entries in the order presented in the problem. If no entry is required, select "No Entry for the account titles and enter O for the amounts. List all debit entries before credit entries.) Concord Corporation issued 4,300, five year, 4% bonds at 106 on January 1, 2023. Interest is paid annually. Each $1,000 bond carried one detachable warrant allowing the holder to purchase 100 common shares in Concord at $9 per share, the price at which Concord shares were trading on the day of the sale of the bonds. Similar straight bonds trading on the ope market paid 5%. On June 30, 2023, 860 of the bond holders exercised the options to buy the shares. Prepare the journal entries to record these events. (Round present value factor calculations to 5 decimal places, e.g. 1.25124 and the final answer to O decimal places eg. 58,971. Credit account titles are automatically indented when the amount is entered. Do not indent manually. Record journal entries in the order presented in the problem. If no entry is required, select "No Entry for the account titles and enter O for the amounts. List all debit entries before credit entries.)

Answer rating: 100% (QA)

Answer the journal entries to record the purchase of common shares and the subsequent exercise of st... View the full answer