On April 7, 2020, Soweto Corp. sold a $ 1,000,000 (par value), 20-year, 8% bond issue for $ 1,060,000. Each $ 1,000 bond has two detachable warrants. Each warrant permits the purchase one of Soweto's no-par value common shares for $ 30. At the time of the sale, Soweto's securities had the following market values:

           Each $ 1,000 bond without warrants                                 $ 1,006

           Warrants                                                                                                     $ 21

           Common shares                                                                                     $ 27

Assuming that Soweto adheres to IFRS, what entry should the corporation make to record the sale of the bonds?

Answer rating: 100% (QA)

The value of the bonds without the warrants is 100... View the full answer