rane Corporation issued 4,400, five year, 4% bonds at 104 on January 1, 2020. Interest is paid annually. Each $1,000 bond carried one etachable warrant allowing the holder to purchase 100 common shares in Crane at $10 per share, the price at which Crane shares were trading on the day of the sale of the bonds. Similar straight bonds trading on the open market paid 5%. On June 30, 2020, 880 of he bond holders exercised the options to buy the shares. repare the journal entries to record these events. (Round present value factor calculations to 5 decimal places, e.g. 1.25124 and the final nswer to O decimal places e.g. 58,971. Credit account titles are automatically indented when the amount is entered. Do not indent manually.)
rane Corporation issued 4,400, five year, 4% bonds at 104 on January 1, 2020. Interest is paid annually. Each $1,000 bond carried one etachable warrant allowing the holder to purchase 100 common shares in Crane at $10 per share, the price at which Crane shares were trading on the day of the sale of the bonds. Similar straight bonds trading on the open market paid 5%. On June 30, 2020, 880 of he bond holders exercised the options to buy the shares. repare the journal entries to record these events. (Round present value factor calculations to 5 decimal places, e.g. 1.25124 and the final nswer to O decimal places e.g. 58,971. Credit account titles are automatically indented when the amount is entered. Do not indent manually.)
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 9P
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