Blossom Corporation issued 1,600, ten year, 6% bonds for 104 on January 1, 2020. Interest is paid annually. Each $1,500 bond carried a detachable warrant allowing the holder to purchase 240 common shares in Blossom at $8 per share, the price at which Blossom shares were trading on the day of the sale of the bonds. Similar straight bonds trading on the open market paid 10%. On June 30, 2020, 160 of the bond holders exercised the options to buy the shares. Prepare the journal entries to record these events. (Round present value factor calculations to 5 decimal places, e.g. 1.25124 and the final answer to O decimal places e.g. 58,971. Credit account titles are automatically indented when the amount is entered. Do not indent manually.) Date Account Titles and Explanation Jan. 1 Debit Credit

Blossom Corporation issued 1,600, ten year, 6% bonds for 104 on January 1, 2020. Interest is paid annually. Each $1,500 bond carried a detachable warrant allowing the holder to purchase 240 common shares in Blossom at $8 per share, the price at which Blossom shares were trading on the day of the sale of the bonds. Similar straight bonds trading on the open market paid 10%. On June 30, 2020, 160 of the bond holders exercised the options to buy the shares. Prepare the journal entries to record these events. (Round present value factor calculations to 5 decimal places, e.g. 1.25124 and the final answer to O decimal places e.g. 58,971. Credit account titles are automatically indented when the amount is entered. Do not indent manually.) Date Account Titles and Explanation Jan. 1 Debit Credit

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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