On September 21, 2010, The Lopez Co. issues $1,000,000 of bonds having a coupon rate of 6%.

Question:

On September 21, 2010, The Lopez Co. issues $1,000,000 of bonds having a rate of 6%. To help the sale, detachable stock warrants are issued at the rate of ten warrants for each $1,000 bond sold. The fair market value of the warrants is $63,000. The bonds with the warrants sold at 101 plus accrued interest. Interest is payable on November 1st and May 1st. (Assume a 360 day year, i.e., 30-day months.)
Prepare the 9/21/10 entry for this transaction.
Coupon
A coupon or coupon payment is the annual interest rate paid on a bond, expressed as a percentage of the face value and paid from issue date until maturity. Coupons are usually referred to in terms of the coupon rate (the sum of coupons paid in a...