Question: On September 1 , 2 0 2 5 , Metlock Company sold at 1 0 4 ( plus accrued interest ) 4 , 0 8

On September 1,2025, Metlock Company sold at 104(plus accrued interest)4,080 of its 10%,10year, $1,000 face value, nonconvertible bonds with detachable stock warrants. Each bond carried ' two detachable warrants. Each warrant was for one share of common stock at a specified option price of $14 per share. Shortly after issuance, the warrants were quoted on the market for $3 each. No fair value can be determined for the Metlock Company bonds. Interest is payable on December 1 and June 1.
Prepare in general journal format the entry to record the issuance of the bonds. (List all debit entries before credit entries. Credit account titles are automatically indented when amount is enteled. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter O for the amounts.)
On September 1 , 2 0 2 5 , Metlock Company sold

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!