Use the incremental method to record the issuance of the bonds and warrants. Ivanhoe Corporation issued 1,800 $1,000 bonds at 101. Each bond was issued with one detachable stock warrant. After issuance, thebonds were selling separately at 98. The market price of the warrants without the bonds cannot be determined.Use the incremental method to record the issuance of the bonds and warrants. (Credit account titles are automatically indented whenamount 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 ExplanationDebitCredit

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e the incremental method to record the issuance of the bonds and warrants.

Financial Reporting, Financial Statement Analysis and Valuation

8th Edition

ISBN:9781285190907

Author:James M. Wahlen, Stephen P. Baginski, Mark Bradshaw

Publisher:James M. Wahlen, Stephen P. Baginski, Mark Bradshaw

Chapter7: Financial Activities

Section: Chapter Questions

Problem 11QE

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Question

Use the incremental method to record the issuance of the bonds and warrants.

Ivanhoe Corporation issued 1,800 $1,000 bonds at 101. Each bond was issued with one detachable stock warrant. After issuance, the
bonds were selling separately at 98. The market price of the warrants without the bonds cannot be determined.
Use the incremental method 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

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