Homework Help is Here – Start Your Trial Now!
Business
Accounting
(b) Assume the same facts as part (a), except that the warrants had a fair value of $23. Prepare the entry to record the issuance of the bonds and warrants. (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. Round intermediate calculations to 5 decimal places, eg. 1.24687 and final answers to O decimal places, eg. 5,125.) Account Titles and Explanation Debit Credit Cash 1,938,000 Discount on Bonds Payable 10,888 Bonds Payable 1,900,000 ASA

(b) Assume the same facts as part (a), except that the warrants had a fair value of $23. Prepare the entry to record the issuance of the bonds and warrants. (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. Round intermediate calculations to 5 decimal places, eg. 1.24687 and final answers to O decimal places, eg. 5,125.) Account Titles and Explanation Debit Credit Cash 1,938,000 Discount on Bonds Payable 10,888 Bonds Payable 1,900,000 ASA

Intermediate Accounting: Reporting And Analysis
Intermediate Accounting: Reporting And Analysis
3rd Edition
ISBN:9781337788281
Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach
Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach
Chapter14: Financing Liabilities: Bonds And Long-term Notes Payable
Section: Chapter Questions
Problem 16E
See similar textbooks
icon
Related questions
icon
Concept explainers
Question
On May 1, 2020, Marigold Company issued 1,900 $1,000 bonds at 102. Each bond was issued with one detachable stock warrant. Shortly after issuance, the bonds were selling at 97, but the fair value of the warrants cannot be determined. (a) Prepare the entry to record the issuance of the bonds and warrants. (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.) Account Titles and Explanation Debit Credit Cash 1,938,000 Discount on Bonds Payable 57,000 Bonds Payable 1,900,000 Paid-in Capital-Stock Warrants 95,000 (b) Assume the same facts as part (a), except that the warrants had a fair value of $23. Prepare the entry to record the issuance of the bonds and warrants. (Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is reguired, W ASA
Transcribed Image Text:On May 1, 2020, Marigold Company issued 1,900 $1,000 bonds at 102. Each bond was issued with one detachable stock warrant. Shortly after issuance, the bonds were selling at 97, but the fair value of the warrants cannot be determined. (a) Prepare the entry to record the issuance of the bonds and warrants. (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.) Account Titles and Explanation Debit Credit Cash 1,938,000 Discount on Bonds Payable 57,000 Bonds Payable 1,900,000 Paid-in Capital-Stock Warrants 95,000 (b) Assume the same facts as part (a), except that the warrants had a fair value of $23. Prepare the entry to record the issuance of the bonds and warrants. (Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is reguired, W ASA
(b) Assume the same facts as part (a), except that the warrants had a fair value of $23. Prepare the entry to record the issuance of the bonds and warrants. (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. Round intermediate calculations to 5 decimal places, eg. 1.24687 and final answers to O decimal places, eg. 5,125.) Account Titles and Explanation Debit Credit Cash 1,938,000 Discount on Bonds Payable 10,888 Bonds Payable 1,900,000 ENG N ASA INTL *- F11 **+ PrtSc F5 F7 F9 F10 F12 Ins %23 & 8 E C J K + || 4.
Transcribed Image Text:(b) Assume the same facts as part (a), except that the warrants had a fair value of $23. Prepare the entry to record the issuance of the bonds and warrants. (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. Round intermediate calculations to 5 decimal places, eg. 1.24687 and final answers to O decimal places, eg. 5,125.) Account Titles and Explanation Debit Credit Cash 1,938,000 Discount on Bonds Payable 10,888 Bonds Payable 1,900,000 ENG N ASA INTL *- F11 **+ PrtSc F5 F7 F9 F10 F12 Ins %23 & 8 E C J K + || 4.
Expert Solution
trending now

Trending now

This is a popular solution!

steps

Step by step

Solved in 2 steps

SEE SOLUTIONCheck out a sample Q&A here
Blurred answer
Knowledge Booster
Receivables Management
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.
Recommended textbooks for you
Intermediate Accounting: Reporting And Analysis
Intermediate Accounting: Reporting And Analysis
Accounting
ISBN:
9781337788281
Author:
James M. Wahlen, Jefferson P. Jones, Donald Pagach
Publisher:
Cengage Learning
Principles of Accounting Volume 1
Principles of Accounting Volume 1
Accounting
ISBN:
9781947172685
Author:
OpenStax
Publisher:
OpenStax College
SEE MORE TEXTBOOKS