Question: Assume that Motorola, Inc., issues bonds with a face value of $10,000,000 for $9,200,000. The bonds have detachable warrants that may be traded in for

Assume that Motorola, Inc., issues bonds with a face value of $10,000,000 for $9,200,000. The bonds have detachable warrants that may be traded in for shares of common stock. Assume that immediately after issue, bonds with warrants detached trade for $9,000,000; the warrants, for $400,000. Use the template below to show the financial statement effects at the date of issue.

Shareholders' Equity Liabilities RE Assets Jounal entry

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