Question: Please find the correct numbers where the x ' s are Recording Entries for Bonds with Warrants On July 1 of Year 1, Salem Corporation

Please find the correct numbers where the x's are
Recording Entries for Bonds with Warrants On July 1 of Year 1,

Recording Entries for Bonds with Warrants On July 1 of Year 1, Salem Corporation authorized $2,000,000 of 7% bonds due in 10 years. The bonds pay cash interest semiannually each June 30 and December 31. Each $1 ,000 bond includes a detachable stock purchase warrant. Each warrant gives the bondholder the right to purchase, for $30, one share of $1 par value common stock at any time during the next 10 years. The bonds were sold at 101 on July 1 of Year 1. The value of the stock purchase warrants at the time of issuance was $100,000. The bonds would sell without warrants at $ $1 a. Record the entry for issuance of bonds on July 1 of Year 1 using the proportional method. Note: Carry all decimals in calculations; round the final answer to the nearest dollar. This means that your allocation ratio should not be rounded--use no less than four decimal places such as 0.8102. Date July 1 Account Name Cash Discount on Bonds Payable Bonds Payable Paid-in CapitalStock Warrants To record bond issuance. Debit 1,808, 1 oo o Credit o 1,808, 1 oo x x b. Record the entry for issuance of bonds on July 1 of Year 1 assuming instead that the warrants are not detachable. Date July 1 Account Name Cash Bonds Payable Premium on Bonds Payable To record bond issuance. Debit Credit 20,000

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