Question: Marigold Corporation issued 2 , 2 0 0 $ 1 , 0 0 0 bonds at 1 0 1 . Each bond was issued with

Marigold Corporation issued 2,200 $1,000 bonds at 101. Each bond was issued with one detachable stock warrant. After issuance, the
bonds were selling in the market at 99, and the warrants had a market price of $40.
Use the proportional method to record the issuance of the bonds and warrants. (List all debit entries before credit entries. Credit account
titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles
and enter 0 for the amounts. Do not round intermediate calculations. Round your answers to 0 decimal places, e.g.5,125.)
Debit
Credit
Discount on Bonds Payable
Paid-in Capital in Excess of Par - Common Stock
 Marigold Corporation issued 2,200 $1,000 bonds at 101. Each bond was

Step by Step Solution

There are 3 Steps involved in it

1 Expert Approved Answer
Step: 1 Unlock blur-text-image
Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock
Step: 3 Unlock

Students Have Also Explored These Related Accounting Questions!