On September 1, 2025, Tamarisk Company sold 10,800 of its 10%, 15-year, $1,000 face value, nonconvertible...

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On September 1, 2025, Tamarisk Company sold 10,800 of its 10%, 15-year, $1,000 face value, nonconvertible bonds with detachable stock warrants at 102. Each bond carried three detachable warrants. Each warrant was for one share of common stock at a specified option price of $25 per share. Shortly after issuance, the warrants were quoted on the market for $2.30 each. No market value can be determined for the Tamarisk Company bonds. Interest is payable on December 1 and June 1. Prepare in general journal format the entry to record the issuance of the bonds. (Credit account titles are automatically indented when amount is entered. Do not indent manually. I entry is required, select "No Entry" for the account titles and enter O for the amounts. List all debit entries before credit entries.) Account Titles and Explanation Debit Credit On September 1, 2025, Tamarisk Company sold 10,800 of its 10%, 15-year, $1,000 face value, nonconvertible bonds with detachable stock warrants at 102. Each bond carried three detachable warrants. Each warrant was for one share of common stock at a specified option price of $25 per share. Shortly after issuance, the warrants were quoted on the market for $2.30 each. No market value can be determined for the Tamarisk Company bonds. Interest is payable on December 1 and June 1. Prepare in general journal format the entry to record the issuance of the bonds. (Credit account titles are automatically indented when amount is entered. Do not indent manually. I entry is required, select "No Entry" for the account titles and enter O for the amounts. List all debit entries before credit entries.) Account Titles and Explanation Debit Credit

Answer rating: 100% (QA)

To record the issuance of the bonds with detachable stock warrants the following general journal ent... View the full answer