Question: On May 1 , 2 0 2 5 , Blossom Co . issued $ 1 4 0 0 0 0 0 of 6 % bonds

On May 1,2025, Blossom Co. issued $1400000 of 6% bonds at 102. The bonds are due on April 30,2031. Twenty detachable stock
warrants entitling the holder to purchase for $40 one share of Blossom's common stock, $15 par value, were attached to each $1000
bond. The bonds without the warrants would sell at 95. On May 1,2025, the fair value of Blossom's common stock was $35 per share
and of the warrants was $2.
On May 1,2025, Blossom should credit Paid-in Capital from Stock Warrants for
$98000.
$53497.
$56000.
$57697.
On May 1,2025, Blossom Co. issued $1400000 of 6% bonds at

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!

Q:

For 2022, assume that Wm Morrison Supermarkets plc (GBR) had pension expense of 61 million and contributed 52 million to the pension fund. Prepare Morrisons journal entry to record pension income and...

Q:

An investor has two bonds in her portfolio, Bond C and Bond Z. Each bond matures in 4 years, has a face value of $1,000, and has a yield to maturity of 9.4%. Bond C pays a 10% annual coupon, while...

Q:

On January 1 , 2 0 2 5 , Waterway Co . sold equipment in exchange for an $ 8 2 0 0 0 0 zero - interest - bearing note due on January 1 , 2 0 1 8 . The prevailing rare of interest for anote of this...

Q:

Question 1 of 1 0.33/1 Cash $13,100 2,300 Inventory Prepaid insurance Equipment BLOSSOM CORPORATION Balance Sheet December 31, 2021 $31.000 Accounts payable 24,600 Interest payable 5,100 Bonds...

Q:

Blossom Corporation's balance sheet at December 31, 2021, is presented below. $13,100 Cash Inventory 2,300 BLOSSOM CORPORATION Balance Sheet December 31, 2021 $31,000 Accounts payable 24,600 Interest...

Q:

Umatilla Bank and Trust is considering giving Blossom Company a loan. Before doing so, it decides that further discussions with Blossom's accountant may be desirable. One area of particular concern...

Q:

Blossom Company is concerned about the accuracy of its year-end inventory balance. Inventory shows a year-end balance of $328,300. Discussions with the company accountant reveal the following. 1. 2....

Q:

Testbank Exercise 144 On January 1, 2020 Blossom Co. issued five-year bonds with a face value of $500,000 and a stated interest rate of 8% payable semiannually on July 1 and January 1. The bonds were...

Q:

On January 1, 2020 Blossom Co. issued five-year bonds with a face value of $840,000 and a stated interest rate of 8% payable semiannually on July 1 and January 1. The bonds were sold to yield 6%....

Q:

On January 1, 2025, Blossom Co. issued ten-year bonds with a face amount of $3500000 and a stated interest rate of 5% payable annually on January 1. The bonds were priced to yield 9%. Present value...

Q:

View Policies Current Attempt in Progress Umatilla Bank and Trust is considering giving Blossom Company a loan. Before doing so, it decides that further discussions with Blossom's accountant may be...

Q:

Projected Start-Up cost Cost in USD Initial Franchise Fee 75,000 Land & Development 1,500,000 Vendors 30,000 Equipment 350,000 Electronic Cash register 25,000 Safe 3,000 Computer hardware and...

Q:

Joe Henry's machine shop uses 2500 brackets during the course of a year. these brackets are purchased from a supplier 90 miles away. The following information is known about the brackets: Annual...

Q:

blem 2 : [ 3 pts ] Use the graph of the function y = f ( x ) shown below to find th lim x - 4 f ( x ) = lim x - 2 - f ( x ) = lim x - 2 f ( x ) = lim x 0 f ( x ) = lim x 2 f ( x ) = lim x 4 f ( x ) =

Q:

10) For a bond that pays cash interest (i.e., not a zero coupon bond), YTM is (a) always equal to the coupon rate (b) always equal to the current yield (c) is always less than the coupon rate (d) can...

Q:

In your first job out of college, do you think you would prefer to work as part of a self-directed work team or in a more traditionally arranged team where a manager takes control? What would be the...

Q:

Group Size and Communication

Q:

Understanding Group Roles