Question $3$

On September $1,2025,$ Waterway Company sold at $104($plus accrued interest$)5,160$ of its $9\%,10-$year, $$1000$ face value, nonconvertible bonds with detachable stock warrants. Each bond carried two detachable warrants. Each warrant was for one share of common stock at a specified option price of $$17$ per share. Shortly after issuance, the warrants were quoted on the market for $$2$ each. No fair value can be determined for the Waterway 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 debit entry before credit entry. Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select $$No Entry$$ for the account titles and enter $0$ for the amounts.$)$On September $1,2025,$ Waterway Company sold at $104($plus accrued interest$)5,160$ of its $9\%,10-$year, $$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 $$17$ per share. Shortly after issuance, the warrants were quoted on the market for $$2$ each.

No fair value can be determined for the Waterway 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 entered. Do not indent manually. If no entry is required, select $"$No Entry" for the account titles

and enter O for the amounts.$)$

DATE

ACCOUNT TITLTES AND EXPLANATION

September $1,2025$

L

$[$

DEBIT