On April 7, 2025, Blossom Corporation sold a $5050000, twenty-year, 7 percent bond issue for $5353000. Each $1000 band has two detachable warrants, each of which permits the purchase of one share of the corporation's common stock for $30. The stock has a par value of $25 per share. Immediately after the sale of the bonds, the corporation's securities had the following market values: 7% bond without warrants Warrants Common stock $1007 20 27 What accounts and amounts should Blossom credit to record the sale of the bonds? Bonds Payable Premium on Bonds Payable Paid-in Capital-Stock Warrants Bonds Payable Premium on Bonds Payable Paid-in Capital-Stock Warrants $5050000 33229 204121 $5050000 200746 102254
On April 7, 2025, Blossom Corporation sold a $5050000, twenty-year, 7 percent bond issue for $5353000. Each $1000 band has two detachable warrants, each of which permits the purchase of one share of the corporation's common stock for $30. The stock has a par value of $25 per share. Immediately after the sale of the bonds, the corporation's securities had the following market values: 7% bond without warrants Warrants Common stock $1007 20 27 What accounts and amounts should Blossom credit to record the sale of the bonds? Bonds Payable Premium on Bonds Payable Paid-in Capital-Stock Warrants Bonds Payable Premium on Bonds Payable Paid-in Capital-Stock Warrants $5050000 33229 204121 $5050000 200746 102254
Financial Reporting, Financial Statement Analysis and Valuation
8th Edition
ISBN:9781285190907
Author:James M. Wahlen, Stephen P. Baginski, Mark Bradshaw
Publisher:James M. Wahlen, Stephen P. Baginski, Mark Bradshaw
Chapter7: Financial Activities
Section: Chapter Questions
Problem 11QE
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