On November 3, 2020, AOC issued $400,000 of 8% bonds at 103. Attached to each $1,000...
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On November 3, 2020, AOC issued $400,000 of 8% bonds at 103. Attached to each $1,000 bond are 10 detachable stock warrants. On the issuance date, the bonds without the warrants sell in the market at 98 per bond. Instructions: a. Use the appropriate method to allocate the proceeds from the bond issuance, and prepare the journal entry to record the issuance. b. The warrants entitle the holder to purchase one share of $2 par value common stock at $9. When the price of the stock equals $24, all warrants are exercised. Prepare the journal entry to record the exercise of the warrants. On November 3, 2020, AOC issued $400,000 of 8% bonds at 103. Attached to each $1,000 bond are 10 detachable stock warrants. On the issuance date, the bonds without the warrants sell in the market at 98 per bond. Instructions: a. Use the appropriate method to allocate the proceeds from the bond issuance, and prepare the journal entry to record the issuance. b. The warrants entitle the holder to purchase one share of $2 par value common stock at $9. When the price of the stock equals $24, all warrants are exercised. Prepare the journal entry to record the exercise of the warrants.
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Answer rating: 100% (QA)
1 Particulars Amount A Amount received on issue of bonds 400000100103 412000 B ... View the full answer
Related Book For
Intermediate Accounting IFRS
ISBN: 978-1119372936
3rd edition
Authors: Donald E. Kieso, Jerry J. Weygandt, Terry D. Warfield
Posted Date:
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