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Text Book Question Pilsen Company issues 12% bonds with a face value of $10,000 and 600 shares of $10 par common stock in a combined sale, receiving total proceeds of $23,000 on December 31. Required: Record the transaction for each independent assumption shown: 1.The common stock has a current market value of $21 per share; the market value of the bonds is not known. 2.The common stock has a current market value of $24.50 per share; the bonds are selling at 98.

Text Book Question Pilsen Company issues 12% bonds with a face value of $10,000 and 600 shares of $10 par common stock in a combined sale, receiving total proceeds of $23,000 on December 31. Required: Record the transaction for each independent assumption shown: 1.The common stock has a current market value of $21 per share; the market value of the bonds is not known. 2.The common stock has a current market value of $24.50 per share; the bonds are selling at 98.

Intermediate Accounting: Reporting And Analysis
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 4RE: Sun Corporation issues 500 shares of 8 par common stock for a patent. The stock is currently selling...
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Pilsen Company issues 12% bonds with a face value of $10,000 and 600 shares of $10 par common stock in a combined sale, receiving total proceeds of $23,000 on December 31.
Required:
Record the transaction for each independent assumption shown:

1.The common stock has a current market value of $21 per share; the market value of the bonds is not known.

2.The common stock has a current market value of $24.50 per share; the bonds are selling at 98.

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