On May 1, 2021, Friendly Corp, issued 200, $1,000 bonds at a price of 102. Each...

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On May 1, 2021, Friendly Corp, issued 200, $1,000 bonds at a price of 102. Each bond was issued with one stock warrant attached to it. At the time of issuance, the bonds were selling at a price of 98. Each stock warrant was exchangeable into 1 share of the company's 51 par value common stock, at an exercise price of $5. During 2021, 80 warrants were exercised. The remaining warrants expired at December 31, 2021. REQUIRED: A) B) C) Assuming that the stock warrants are detachable warrants, and that the warrants were selling at $8 each: 1) Prepare the entry to record the issuance of the bonds and warrants on May 1, 2021. Prepare the entry to record the exercise of the warrants during 2021. Prepare the entry to record the expiration of the warrants at the end of 2021. are Assuming that the stock warrants detachable warrants, and that the selling price of the warrants is not known: 1) Prepare the entry to record the issuance of the bonds and warrants at May 1, 2021. Assuming that the stock warrants are non-detachable warrants, and that the selling price of the warrants is not known: 1) Prepare the entry to record the issuance of the bonds and warrants on May 1, 2021. On May 1, 2021, Friendly Corp, issued 200, $1,000 bonds at a price of 102. Each bond was issued with one stock warrant attached to it. At the time of issuance, the bonds were selling at a price of 98. Each stock warrant was exchangeable into 1 share of the company's 51 par value common stock, at an exercise price of $5. During 2021, 80 warrants were exercised. The remaining warrants expired at December 31, 2021. REQUIRED: A) B) C) Assuming that the stock warrants are detachable warrants, and that the warrants were selling at $8 each: 1) Prepare the entry to record the issuance of the bonds and warrants on May 1, 2021. Prepare the entry to record the exercise of the warrants during 2021. Prepare the entry to record the expiration of the warrants at the end of 2021. are Assuming that the stock warrants detachable warrants, and that the selling price of the warrants is not known: 1) Prepare the entry to record the issuance of the bonds and warrants at May 1, 2021. Assuming that the stock warrants are non-detachable warrants, and that the selling price of the warrants is not known: 1) Prepare the entry to record the issuance of the bonds and warrants on May 1, 2021.

Answer rating: 100% (QA)

A 1 May 1 2021 Issuance of bonds and warrants Cash 102000 Bond payable 100000 Stock wa... View the full answer