Cherry Corporationsold $30,000 of 8% bonds for $40,200. Each $1,000 bond carried eight rights and each right
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Cherry Corporationsold $30,000 of 8% bonds for $40,200. Each $1,000 bond carried eight rights and each right allowed the holder to acquire one share of $10 par stock for $16 a share. After the issuance of the securities, the bonds were quoted at 104 and the rights were quoted at $4 each. Later, one-half of the rights were exercised. At date of exercise, how much should be credited to Additional Paid-in Capital?
a. | $1,320 | |
b. | $720 | |
c. | $600 | |
d. | $2,640 |
Related Book For
Horngrens Financial and Managerial Accounting
ISBN: 978-0133866292
5th edition
Authors: Tracie L. Nobles, Brenda L. Mattison, Ella Mae Matsumura
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