Stellar Corporation issued $6,000,$ five year, $3\%$ bonds at $103$ on January $1,2023.$ Interest is paid annually. Each $$1,000$ bond carried one detachable warrant allowing the holder to purchase $100$ common shares in Stellar at $$9$ per share, the price at which Stellar shares were trading on the day of the sale of the bonds. Similar straight bonds trading on the open market paid $6\%.$ On June $30,2023,1,200$ of the bond holders exercised the options to buy the shares.

Prepare the journal entries to record these events.

Answer rating: 100% (QA)

To record the mentioned events we need to prepare journal entries for each transaction Lets go throu... View the full answer