Question: need help on 4th bantuan boowolasM 15 muzz won 4. On January 1, 2019, Legion Memorial Corporation issued $20 million of tato nonconvertible bonds at
bantuan boowolasM 15 muzz won 4. On January 1, 2019, Legion Memorial Corporation issued $20 million of tato nonconvertible bonds at 105. The bonds have a 4% coupon rate and mature in 10 years. Each $1,000 bond was issued with 15 detachable stock warrants, each of which entitled the holder to purchase one share of Legion's no-par common stock for $25. Immediately after issuance, the separate market value of the warrants was $5. a. Prepare the journal entry for Legion to record the issuance of these bonds. cash (185% of 20M) 21,000,000 Discount on BIP bonds pays 500,000 nisbiano ebrio Bonds payable 20,000,000 (became Equity - Stock warrants rit 1 tsw.de 1,500,000 b. Calculate the effective interest rate for the bond component (only) of 5022l debat this financial instrument. (Again, you know PV, Pmt, FV and N; you can solve for I). You can round this interest rate to 2 decimal places. N= 20 I= ? I= 2.19% semi-annualy NE - 21,000,000 4.38% annualy PMT= 500,000 FV - 20,000,000 c. Using the effective rate from b., prepare an amortization table that covers the first four coupon payments on this bond. Wate Int Payment Int . exp. Amortization carrying value 1.1.2019 21,000,000 459,990 40100 500,000 6.30.19 20,959,900 459,022 40978 20,918,922 12.31.19 458, 124 20,8T), 046 6.30.20 437,207 42793 20,834,253 41876 500,000 500,000 500,000 12.31.20 d. On January 1, 2021, assume that holders of 50,000 of the stock warrants elect to exercise these options and buy Legion common stock. Prepare the journal entry for this transaction. Common stock 50,000
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