please help me The Free Corporation has common stock with a par value of $25 per share. On March 1, 2020, Free Corporation sold a $6,000,000, twenty-year, 8 percent bond issue for a total of $6,360,000. Each $1,000 bond has two detachable warrants, each of which permits the purchase ofone share of the corporation's common stock for $30. Immediately after the sale of the bonds, the corporation's securities had the followingmarket values:8% bond without warrantsWarrantsCommon stocka. Bonds PayableWhat accounts should Free credit to record the issuance of the bonds and warrants?Premium on Bonds PayablePaid-in Capital-Stock Warrantsb. Bonds PayablePremium on Bonds PayablePaid-in Capital-Stock Warrantsc. Bonds PayablePremium on Bonds PayablePaid-in Capital Stock Warrantsd. Bonds Payable$1,00821Premiums on Bonds Payable28$6,000,000232,800127,200$6,000,00048,000252,000$6,000,000105,600254,400ICILUATAC$6,000,000360,000 Select one:O a. Answer aO b.Answer bO c.Answer cO d.Answer d

Bonds payable is a liability account that holds the sum that the issuer owes bondholders.Given that…

What accounts should Free credit to record the issuance of the bonds and warrants? a. Bonds Payable Premium on Bonds Payable i Paid-in Capital-Stock Warrants b. Bonds Payable Premium on Bonds Payable Paid-in Capital-Stock Warrants c. Bonds Payable Premium on Bonds Payable Paid-in Capital-Stock Warrants $6,000,000 232,800 127,200 $6,000,000 48,000 252,000 $6,000,000 105,600 254,400

What accounts should Free credit to record the issuance of the bonds and warrants? a. Bonds Payable Premium on Bonds Payable i Paid-in Capital-Stock Warrants b. Bonds Payable Premium on Bonds Payable Paid-in Capital-Stock Warrants c. Bonds Payable Premium on Bonds Payable Paid-in Capital-Stock Warrants $6,000,000 232,800 127,200 $6,000,000 48,000 252,000 $6,000,000 105,600 254,400

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

Chapter15: Contributed Capital

Section: Chapter Questions

Problem 5MC

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