n May 1, 2020, Friendly Company issued 2,000 $1,000 bonds at 102. Each bond was issued with one detachable stock warrant. Shortly after issuance, the bonds were selling at 98, but the fair value of the warrants cannot be determined. (a) Prepare the entry to record the issuance of the bonds and warrants (b) Assume the same facts as part (a), except that the warrants had a fair value of $30. Prepare the entry to record the issuance of the bonds and warrants.

Q: On July 1, 2020, Roberts Corporation issued $3,000,000 of 9% bonds payable in 20 years. The bonds…

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Q: On May 1, 2020, Friendly Company issued 2,000 $1,000 bonds at 102. Each bond was issued with one…

A: Bonds are the promise made between two or more persons legally. Bonds are issued by the companies…

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A: Explanation: Value = Value of Bonds - Conversion Value - Unamortized Discount Value = $148000 -…

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A: Given information is: On January 1, 2021, Essence Communications issued $800,000 of its 10-year, 8%…

Q: Prepare the entry to record the issuance of the bonds and warrants. (Credit account titles are…

A: Bonds:   Bonds are long-term promissory notes that are represented by a company while borrowing…

Q: On May 1, 2022, Marly Co. issued €500,000 of 7% bonds at 103, which are due on April 30, 2032.…

A: Bonds payable is a form of liabilty for the business, on which regular interest payments needs to be…

Q: Crane Electric sold $6,240,000, 10%, 10-year bonds on January 1, 2022. The bonds were dated January…

A: Solution: When bonds are redeemed before maturity date, difference between carrying value and…

Q: On January 1, 2020, Sage Company purchased  11% bonds, having a maturity value of $ 301,000 for $…

A: Bond purchased: In order to obtain money from investors who are prepared to lend them money for a…

Q: On June 1, 2021, NEX Company received ₱1,077,200 plus accrued interest for 12% bonds with face…

A: "Since you have asked multiple question we will solve the first three sub part question for you.  If…

Q: On July 1, 2019, Salem Corporation issued $3 million of 12% bonds payable in 10 years. The bonds pay…

A:

Q: DEF Company was authorized to issue 12%, 10-year bond with face amount of P20,000,000 on January 1,…

A:

Q: lue of each stock purchase

A: Answer b. $489,250             Cash recd = 103% X 500 Nos X $1,000 = $515,000…

Q: On April 1, 2020, Seminole Company sold 15,000 of its 11%, 15-year, $1,000 face value bonds at 97.…

A: Since we only answer up to 3 sub-parts, we’ll answer the first three. Please resubmit the question…

Q: Nabil Company issued $1,500,000 of bonds on January 1, 2020.   Instructions   Prepare the journal…

A: The word redemption seems to have various purposes in the financial and business world, depending on…

Q: On April 1, 2020, Waterway Company sold  17,100 of its  12%,  15-year, $1,000 face value bonds at…

A: Working Notes: 1. Calculate the discount on bonds payable as shown below:Discount on bonds payable =…

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Q: During 2018, QQ Corporation issued at 95, 1,000 of its 8%, P5,000 bonds due in ten years. One…

A: Solution- Market price of bond= 50000* 1000 * .06 ( 60 * 10%)= 3000000 Market value of stock warrent…

Q: 1. Determine the value to be assigned to the bonds and the warrants and prepare the journal entry to…

A:

Q: At December 31, 2021 the following balances existed on the books of Bulaga Corporation: Bonds…

A: If the bonds are redeemed at more than the carrying value of the bonds , the bonds are said to be…

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Q: On January 1, 2020, Safety Company issued 10,000 P1,000 bonds with 10% stated interest payable every…

A: 3.How much is the net increase/decrease in the Shareholders' Equity during 2021? [Indicate whether…

Q: On May 31, 2020, BLUE Company issued 6% bonds with face amount of ₱4,000,000 for net proceeds of…

A: INTEREST EXPENSE IS THE COST INCURRED BY AN ENTITY FOR THE BORROWED FUNDS .

Q: On May 31, 2020, BLUE Company issued 6% bonds with face amount of ₱4,000,000 for net proceeds of…

A: Period Interest Payment Interest Expense Discount Amortization Bond Amortized Cost May 31, 2020…

Q: If the company issued RO 100,000 , 5% interest, 10-year bonds at 98 on January 1, 2021, which of the…

A: Answer Bond issued = RO98 Face value per BOND = RO100 Discount price per BOND = (RO100 - RO98) = RO2…

Q: On May 1, 2021, Payne Co. issued $1,500,000 of 7% bonds at 103, which are due on April 30, 2031.…

A: Bonds represent the liabilities on which a fixed percentage of interest has to be paid over a period…

Q: On May 1, 2021, Coronado Industries issued $2950000 of 7% bonds at 104, which are due on April 30,…

A: Bonds are the highly secured securities which are redeemable after a certain span of time.

Q: On April 1, 2020, Cat Company sold 12,000 of its ₱1,000 11%, 5-year face value bonds at 96. The…

A: Total discount on bonds issue = Face value of bonds x (100- issue price)/100 = ₱12,000,000 x (100 -…

Q: On January 1, 2020, Sage Company purchased  11% bonds, having a maturity value of $ 301,000 for $…

A: The question is based on the concept of Financial Accounting.

Q: On May 1, 2020, Larkspur Company issued 1,900 $1,000 bonds at 102. Each bond was issued with one…

A: Bond: It is a debt instrument issued by the companies in order to raise finance. Bonds can b traded…

Q: On May 1, 2021, Duck Corporation issued $2,000,000 of 8% nonconvertible bonds at 104, which are due…

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Q: On May 1, 2020, Judice Company issued 400 $1,000 bonds at 104. Each bond was issued with two…

A: Bonds Payable: Bonds payable are referred to long-term debts of the business, issued to various…

Q: Kingbird, Inc. issued $430,000 of 5-year, 7% bonds at 97 on January 1, 2020. The bonds pay interest…

A: Introduction: Journals: Recording of a business transactions in a chronological order. First step in…

Q: On September 1, 2020, Wildhorse Company sold 9,960 of its 9%, 15-year, $1,000 face value,…

A: The question is based on the concept of Financial Accounting.

Q: On September 1, 2020, Crane Company sold at 104 (plus accrued interest) 3,000 of its 9%, 10-year,…

A: A bond refers to a fixed income instrument that speaks to a credit made by a speculator to a…

Q: On July 1, 2019, Salem Corporation issued $3.3 million of 9% bonds payable in 10 years. The bonds…

A: Face amount of bonds = 3,300,000 Cash received = 3,300,000 Value of warrent = 132,000 Discount on…

Q: On July 1, 2019, Salem Corporation issued $3.2 million of 10% bonds payable in 10 years. The bonds…

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Q: On December 31, 2020, the liability section of Martin Luther Company's statement of financial…

A:

Q: On January 1, 2021, Tiny Tim Industries had outstanding $1,000,000 of 9% bonds with a book value of…

A: Compare the amount paid for the bonds and book value then we get the loss To calculate book value,…

Q: The following are two independent situations. 1.   Sandhill Corporation redeemed $130,500 face…

A: Journal entry is a recording of a financial transaction of a business with debit and credit columns…

Q: OI March 1, 2021, Remy Corporation issued $1,000,000 of 8% nonconvertible bonds at 104, which are…

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A: Introduction: The issuer acknowledges a loss on retirement if the price paid to retire a bond…

Q: On December 1, 2021, Bramble Corp.issued 680 of its 8%, $1.000 bonds at 104. Attached to each bond…

A: Compound financial instruments are instruments with both debt and equity component. Therefore, the…

Q: On January 1, 2020, Whispering Corporation redeemed $510,000 of bonds at 98. At the time of…

A: When the bonds are issued at premium, the premium on bonds amortised needs to be carried forward and…

Q: On January 1, 2020, Henderson Corporation redeemed $500,000 of bonds at 99. At the time of…

A: Calculate the amount of cash paid to redeem the bond.