Hoffman Corporation issued $65 million of 5%, 20-year bonds at 104. Each of the 65,000 bonds...

    

Transcribed Image Text:

Hoffman Corporation issued $65 million of 5%, 20-year bonds at 104. Each of the 65,000 bonds was convertible into one share of $1 par common stock. Prepare the journal entry to record the issuance of the bonds. (Enter your answers in millions rounded to 1 decimal place (i.e., 5,500,000 should be entered as 5.5). If no entry is required for a transaction/event, select "No journal entry required" in the first account field.) Journal entry worksheet 1 > Record the issuance of the bonds. Note: Enter debits before credits. Event General Journal Debit Credit 1 Hoffman Corporation issued $55 million of 7%, 15-year bonds at 104. Each of the 55,000 bonds was issued with 12 detachable stock warrants, each of which entitled the bondholder to purchase, for $24, one share of $1 par common stock. At the time of sale, the market value of the common stock was $29 per share and the market value of each warrant was $5. Prepare the journal entry to record the issuance of the bonds. (Enter your answers in millions rounded to 1 decimal place (i.e., 5,500,000 should be entered as 5.5). If no entry is required for a transaction/event, select "No journal entry required" in the first account field.) View transaction list Journal entry worksheet 1 Record the issuance of the bonds. Note: Enter debits before credits. Event General Journal Debit Credit 1 Hoffman Corporation issued $65 million of 5%, 20-year bonds at 104. Each of the 65,000 bonds was convertible into one share of $1 par common stock. Prepare the journal entry to record the issuance of the bonds. (Enter your answers in millions rounded to 1 decimal place (i.e., 5,500,000 should be entered as 5.5). If no entry is required for a transaction/event, select "No journal entry required" in the first account field.) Journal entry worksheet 1 > Record the issuance of the bonds. Note: Enter debits before credits. Event General Journal Debit Credit 1 Hoffman Corporation issued $55 million of 7%, 15-year bonds at 104. Each of the 55,000 bonds was issued with 12 detachable stock warrants, each of which entitled the bondholder to purchase, for $24, one share of $1 par common stock. At the time of sale, the market value of the common stock was $29 per share and the market value of each warrant was $5. Prepare the journal entry to record the issuance of the bonds. (Enter your answers in millions rounded to 1 decimal place (i.e., 5,500,000 should be entered as 5.5). If no entry is required for a transaction/event, select "No journal entry required" in the first account field.) View transaction list Journal entry worksheet 1 Record the issuance of the bonds. Note: Enter debits before credits. Event General Journal Debit Credit 1

Answer rating: 100% (QA)

Part 1 No Event General Journal Debit million Creditmillion 1 1 Cash 65000... View the full answer