On May 1, 2020, Carla Company issued 1,700 $1,000 bonds at 102. Each bond was issued...
Fantastic news! We've Found the answer you've been seeking!
Question:
Transcribed Image Text:
On May 1, 2020, Carla Company issued 1,700 $1,000 bonds at 102. Each bond was issued with one detachable stock warrant. Shortly after issuance, the bonds were selling at 97, but the fair value of the warrants cannot be determined. (a) Prepare the entry to record the issuance of the bonds and warrants. (Credit account titles are automatically indented when 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 Cash 1,734,000 Discount on Bonds Payable 51,000 Bonds Payable 1,700,000 Paid-in Capital-Stock Warrants 85,000 (b) Assume the same facts as part (a), except that the warrants had a fair value of $23. Prepare the entry to record the issuance of the bonds and warrants. (Credit account titles are automatically indented when 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. Round intermediate calculations to 5 decimal places, e.g. 1.24687 and final answers to 0 decimal places, e.g. 5,125.) Account Titles and Explanation Debit Credit Cash 1,734,000 Discount on Bonds Payable 22,701 Bonds Payable 1,700,000 Paid-in Capital-Stock Warrants 56,701 On May 1, 2020, Carla Company issued 1,700 $1,000 bonds at 102. Each bond was issued with one detachable stock warrant. Shortly after issuance, the bonds were selling at 97, but the fair value of the warrants cannot be determined. (a) Prepare the entry to record the issuance of the bonds and warrants. (Credit account titles are automatically indented when 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 Cash 1,734,000 Discount on Bonds Payable 51,000 Bonds Payable 1,700,000 Paid-in Capital-Stock Warrants 85,000 (b) Assume the same facts as part (a), except that the warrants had a fair value of $23. Prepare the entry to record the issuance of the bonds and warrants. (Credit account titles are automatically indented when 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. Round intermediate calculations to 5 decimal places, e.g. 1.24687 and final answers to 0 decimal places, e.g. 5,125.) Account Titles and Explanation Debit Credit Cash 1,734,000 Discount on Bonds Payable 22,701 Bonds Payable 1,700,000 Paid-in Capital-Stock Warrants 56,701
Expert Answer:
Related Book For
Intermediate Accounting Volume 1
ISBN: 978-1119496496
12th Canadian edition
Authors: Donald E. Kieso, Jerry J. Weygandt, Terry D. Warfield, Irene M. Wiecek, Bruce J. McConomy
Posted Date:
Students also viewed these accounting questions
-
Prepare the entry to record income taxes on December 31, 2011, assuming that Jason Corporations income tax expense is $120,000 and that it owes $80,000 in income taxes to the government. Prepare the...
-
Prepare journal entry to record the following issuances of stock; A corporation issued 700 shares of no-par common stock to its promoters in exchange for their efforts, estimated to be worth $800....
-
Assume the same facts as in Q11- 16. Net assets that were undervalued at acqui-sition have a remaining estimated life of 10 years ( assume no residual value and straight- line depreciation). There is...
-
On April 12, 2011, BAM Technologies floated a $100 million bond issue. Each $1,000 bond entitled the bondholder to receive $50 every six months (October 12th and April 12th) until April 12, 2041, at...
-
Finjan is a company that makes a new security product designed to protect software written in the Java programming language against hostile interference. The market for this program materialized...
-
Suppose that an object moves along a coordinate line so that its directed distance from the origin after t seconds is 2t + 1 feet. (a) Find its instantaneous velocity at t = , > 0. (b) When will it...
-
Consider the derivation of Equation (4.5) for the sample size of a two-sample z-test with known variance and equal allocation. a. Identify terms in Equation (4.2) that are smaller than $\alpha / 2$...
-
New lithographic equipment, acquired at a cost of $800,000 at the beginning of a fiscal year, has an estimated useful life of five years and an estimated residual value of $90,000. The manager...
-
Using the above graph G, answer the following questions. 1. Is Ga DAG? 2. What are the strongly connected components of G? 3. Give a valid topological ordering of the nodes. 4. Is this the only valid...
-
Pursuit Company produces two products: Bric and Brac. The following table summarizes the products details and planned unit sales for the upcoming period: Pursuit Company has total fixed costs of $10...
-
Q1. Graphics are an essential component of presentation. Agree or disagree. Explain with example (10 marks) Q2. Talk about the important role of an 'audience' in communication. (10 marks) Q3. What do...
-
salary information for the cities of Boston, MA = $58,048 Omaha, NE=$48,709 San Diego, CA=$55,599 Does the job have different bonuses as a percentage of base salary? If so, what could possibly...
-
should we still go for social media messaging as part of the business overall strategy and what are mitigations to the risks? Explain
-
In terms of Organization and management theories What are teamwork processes, and what are some examples of team activities that fall into this process category? What factors influence the...
-
Find an entity that has made efforts to maintain or improve its ethical behavior, socialresponsibility, and/or diversity.Describe the entity, the entity's purpose, anddescribeits efforts to maintain...
-
Describe 3 different scenarios where social and/or human capital have played a role in conflict or negotiation outcomes. In your most recent job, describe the degree of social and human capital you...
-
Given a sinusoidal wave with WL = 0.5m. Find the phase difference between a point 0.1m from the peak of a wave and another point 0.3m further along from the same peak.
-
QUESTION 2 The CEO of Farisha Hijab Sdn Bhd insisted on further investigation to be carried out that he also required Mr Muaz to conduct the analysis of variance for the material and labour of the...
-
The Blue Collar Corporation had income from continuing operations of $12.6 million in 2020. During 2020, it disposed of its restaurant division at a loss of $89,000 (net of tax of $38,000). Before...
-
Lowell Corp.s December 31, 2020 trial balance includes the following accounts: Inventory $120,000; Buildings $207,000; Accumulated DepreciationEquipment $19,000; Equipment $190,000; Land Held for...
-
Pine Corporations adjusted trial balance contained the following asset accounts at December 31, 2020: Prepaid Rent $22,000; Goodwill $50,000; Franchise Fees Receivable $2,000; Intangible Assets...
-
You are to open the books of F. Polk, a trader, via the journal to record the assets and liabilities, and are then to record the dialy transactions for the month of May. A trial balance is to be...
-
Show the journal entries necessary to record the following items: 2017 Apr 1 Bought office furniture on credit from Durham Brothers Ltd 1,400. 4 We take goods costing 270 out of the business...
-
You are to show the journal entries necessary to record the following items which occured in 2016: (a) May 1 Bought a motor bike on credit from Lakeside Garage for 5,500. (b) May 3 A debt of 347...
Study smarter with the SolutionInn App