Case D: Miller Bikes is a national chain of upscale bicycle shops. The company has followed...

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Case D: Miller Bikes is a national chain of upscale bicycle shops. The company has followed a successful strategy of locating near major universities Miller has the opportunity to expand into several new markets but must raise additional capital. The company has engaged in the following transactions: • Issued 45,000 additional shares of common stock. The stock has a $1 par value. The shares sold for $25 per share. • Issued bonds. These bonds have a face value of $1,000,000 and a coupon rate of 10 percent. The bonds mature in 10 years and pay interest semiannually. When the bonds were issued, the annual market rate of interest was 8 percent Required: 1. Record the sale of the bonds. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.) 2. Record the issuance of the stock. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.) Case D: Miller Bikes is a national chain of upscale bicycle shops. The company has followed a successful strategy of locating near major universities Miller has the opportunity to expand into several new markets but must raise additional capital. The company has engaged in the following transactions: • Issued 45,000 additional shares of common stock. The stock has a $1 par value. The shares sold for $25 per share. • Issued bonds. These bonds have a face value of $1,000,000 and a coupon rate of 10 percent. The bonds mature in 10 years and pay interest semiannually. When the bonds were issued, the annual market rate of interest was 8 percent Required: 1. Record the sale of the bonds. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.) 2. Record the issuance of the stock. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.)

Answer rating: 100% (QA)

Calculation of the Bond Premium Face Value of Bonds 1000000 Coupon Rate 10 Market Rate 8 Number of ... View the full answer