On July 1, 2020, Tealight Company issued 2,000 $ 1,000 bonds at 103. Each bond was issued with one detachable stock warrant Shortly after issuance the bonds were selling at 97 and the warrants had a fair value of $35. Prepare the journal entry to record the issuance of the bonds and warrants .

On July 1, 2020, Tealight Company issued 2,000 $ 1,000 bonds at 103. Each bond was issued with one detachable stock warrant Shortly after issuance the bonds were selling at 97 and the warrants had a fair value of $35. Prepare the journal entry to record the issuance of the bonds and warrants .

Principles of Accounting Volume 1

19th Edition

ISBN:9781947172685

Author:OpenStax

Publisher:OpenStax

Chapter13: Long-term Liabilities

Section: Chapter Questions

Problem 7EA: On Jan. 1, Year 1, Foxcroft Inc. issued 100 bonds with a face value of $1,000 for $104,000. The...

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Definition Definition Method of recording financial transactions in the book of original entry by debiting and crediting the accounts affected by a transaction using the golden rules of accrual accounting.

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