Question: Current Attempt in Progress Pearl Corporation issued 6 , 1 0 0 , five year, 4 % bonds at 1 0 3 on January 1

Current Attempt in Progress

Pearl Corporation issued

6, 100,

five year,

4 %

bonds at

103

on January

1, 2023 .

Interest is paid annually. Each $

1, 000

bond carried one detachable warrant allowing the holder to purchase

100

common shares in Pearl at $

11

per share, the price at which Pearl shares were trading on the day of the sale of the bonds. Similar straight bonds trading on the open market paid

5 % .

On June

30, 2023, 1, 220

of the bond holders exercised the options to buy the shares.

Prepare the journal entries to record these events.

(

Round present value factor calculations to

5

decimal places, e

.

. 1.25124

and the final answer to

0

decimal places e

.

. 58, 971 .

Credit account titles are automatically indented when the amount is entered. Do not indent manually. Record journal entries in the order presented in the problem. If no entry is required, select

"

No Entry" for the account titles and enter

0

for the amounts. List all debit entries before chdit entries.

)

Date

Account Titles and Explanation

Debit

Credit

eTextbook and Media

List of Accounts

Attempts:

0

3

used

Current Attempt in Progress Pearl Corporation issued 6,100, five year, 4%

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