Eisler Corporation issued 2,000 $1,000 bonds at 101. Each bond was issued with one detachable stock warrant. After issuance, the bonds were selling in the market at 98, and the warrants had a market price of $40. Use the proportional method to record the issuance of the bonds and warrants.

Q: e the incremental method to record the issuance of the bonds and warrants.

A: Solution Working note Method to be used         =incremental method to record the issuance of the…

Q: ABC Company issued bands with a face amount of $1,000,000 and received $1,000,000 cash. Prepare the…

A: Solution: Bond are issued by the company to obtain debt financing. Bonds carry interest rate that…

Q: On May 1, 2020, Forest Company issued 3,000 $1,000 bonds at 102. Each bond was issued with one…

A: Market Value of Warrants = No. of bonds x   fair value = 3,000 x $30 = $90,000 Market Value of Bonds…

Q: Record the issue of bonds with a par value of $270,000.

A: The journal entries are prepared to keep the record of daily transactions of the business.

Q: Novak Corporation issued 2.000 $1,000 bonds at 103. Each bond was issued with one detachable stock…

A: Journal entries are prepared to record the transactions in the books of account showing the double…

Q: The following three companies issued the following bonds: 1. Carr, Inc. issued $100,000 of 8%,…

A: Using straight line amortization, the premium or discount on bonds payable is amortized equally for…

Q: For each of the unrelated transactions described below, present the entry(ies) required. (a)…

A: Dear student, kindly check the answer in the answer explanation box below.Explanation:Part 1:…

Q: Tomasovich Inc. issued bonds with a face value of $ 100,000 and a stated rate of 8%. Tomasovich…

A: Journal Entry is CrDrCash account   $102,500To Bonds Payable account$100,000   To Premium on bonds…

Q: Medhurst Corporation issued $92,700 in bonds for $90,000. The bonds had a stated rate of 10% and pay…

A: Premium (Discount) on bonds issue = Selling price of the bonds - Face value of bonds = $90,000 -…

Q: A company received cash proceeds of $206,948 on a bond issue with a par value of $200,000. The…

A: Cash proceeds = $206,948 Par value = $200,000 Premium = 206,948-200,000 = $6,948

Q: Marigold Corporation issued 2,200 $1,000 bonds at 101. Each bond was issued with one detachable…

A: BOND Bond is a Financial Security which is generally Issued by the Corporations, Government &…

Q: On July 1, 2020, Tealight Company issued 2,000 $ 1,000 bonds at 103. Each bond was issued with one…

A: The process of recording financial activity for the first time in the books of accounts is known as…

Q: EWO Enterprises issues $4,500,000 of bonds payable.Required:Prepare the necessary journal entries to…

A: Journal is the book of original entry in which all the transactions of the business are recorded…

Q: Medhurst Corporation issued $90,000 in bonds for $87,000. The bonds had a stated rate of 8% and pay…

A: Journal Entry: Journal entry is the act of keeping records of transactions in an accounting journal.…

Q: McNeil Corporation issued $660,000 of 7​% ​10-year bonds. The bonds are dated and sold on January​…

A: While using Effective Interest Method we recognize interest expenses on the basis of effective…

Q: A company issues 1,000 bonds, each with a face value of $1,000, for $1.1 million. Each bond has a…

A: Warrants are a sort of financial instrument that offers the right to acquire an underlying share at…

Q: Medhurst Corporation issued $87,594 in bonds for $98,782. The bonds had a stated rate of 2% and pay…

A: Interest payment = Face value of bonds*2%*3/12

Q: A company issues bonds with a face value of $5,000,000 and receives cash proceeds of $5,500,000 from…

A: Journal entries are prepared to record the financial and non financial transactions of the business…

Q: Tamarisk Corporation issued 2,100 $1,000 bonds at 103. Each bond was issued with one detachable…

A: Warrants -Companies may offer warrants as a financial instrument in return for costs or payments.…

Q: Issues bonds with a face value of $50,000 for $51,000. Each $1,000 bond Carries 10 warrants, and…

A:

Q: Can you help explain the computations on this problem: E. Corp issued 2,000 $1,000 bonds at 101.…

A: Lets understand the basics. When bond is issued with detachable stock warrent and if we are using…

Q: sell for 98 without the warrants. The market value of each warrant is $45. Instructions: A. Record…

A:

Q: Medhurst Corporation issued $89,487 in bonds for $91,321. The bonds had a stated rate of 7% and pay…

A: BOND  Bond is a Financial Securities which is Generally Issued by the Corporation's, Government…

Q: Medhurst Corporation issued $91,900 in bonds for $89,000. The bonds had a stated rate of 6% and pay…

A: Bonds are a form of debt or loan issued by the company, on which business has to make regular…

Q: Carla Corporation issued 2,200 $1,000 bonds at 103. Each bond was issued with one detachable stock…

A: A bond refers to a fixed income instrument that is used for representing the loan taken by the…

Q: Complete the following: (a) Prepare the journal entry to issue $100,000 bonds that sold for…

A: Lets undertand the basics. Bonds can be issued at par value, at discount or at premium. If bond is…

Q: Wildhorse Corporation issued 2.050 $1,000 bonds at 101. Each bond was issued with one detachable…

A: Journal entries are the primary reporting of the business transactions in the books of accounts.…

Q: Pinetop Corporation issued $153,000 of 12-year bonds at par. The bonds have a stated rate of 5% and…

A: Bonds payable are one of the sources of finance and are shown as liability. If the interest rate is…

Q: Crane Corporation issued 2,000 $1,000 bonds at 101. Each bond was issued with one detachable stock…

A: Step 1: Calculate the total cash received from selling the bonds and the total value of the…

Q: Medhurst Corporation issued $86,722 in bonds for $94,389. The bonds had a stated rate of 8% and pay…

A: The quarterly payment on the bond is calculated on the face value of the bonds at the stated rate…

Q: A company issued 432 $1,000 bonds at 116, and each bond was issued with one detachabl

A: Solution  Market value of bond= 432 * $1000 * 1.04= 449280   Issue price = 432 * $1000 * 1.16=…

Q: much should be recorded for Discount (or Premium) on Bonds Payable? (Enter an amount. Please do not…

A: Journal: Journal is considered as a book of original entry because all the transactions that have…

Q: Blossom Capital Ltd. issued 450 $1,000 bonds at 101. Each bond was issued with 10 detachable stock…

A: A journal entry is a basic accounting record that is used to chronologically track financial…

Q: Nichols Inc. issued 3,000 $1,000 bonds at 102. Each bond was issued with one detachable stock…

A: Proportional Method of Allocation between bond and Warrant The division of the proceeds from a bond…

Q: Partially correct answer iconYour answer is partially correct. Sweet Company issued $11,000,000 par…

A: calculate the value of bonds: value of bonds = $11,000,000 * (97 /100) Value of bonds = $11.000.000…

Q: Vaughn Corporation issued 1,800 $1,000 bonds at 101. Each bond was issued with one detachable stock…

A: Answer:- A bond is a fixed income security that is used to signify a loan that a borrower has…

Q: Ayayai Corporation issued 5,000 $1,000 bonds at 98. Each bond was issued with one detachable stock…

A: Discount on bonds payable = No. of bonds x face value per bonds x (100-sales price)% = 5000 x $1000…

Q: The following information is the same as the previous question. A Company issued a bond payable with…

A: The additional paid in capital can be defined as the difference between the price paid by the…

Q: Medhurst Corporation issued $82,900 in bonds for $80,000. The bonds had a stated rate of 6% and pay…

A: Bonds are issued by the company to meet the financial requirements of the company without losing its…

Q: McIntyre Corporation issued 2,000 $1,000 bonds at 101. Each bond was issued with one detachable…

A: Bonds:   Bonds are long-term promissory notes that are represented by a company while borrowing…

Q: e selling in the market at 99, and the warrants had a market price of $35. oportional method to…

A: Answer : Account title Dr. Cr. Cash ($1,800,000*1.03) $1,854,000   Discount on bonds payable…

Q: #4.  On Jan. 1, Year 1, Nadal Inc. issued 100 bonds with a face value of $1,000 each for $103,500.…

A: JOURNAL ENTRIESJournal Entry is the First stage of Accounting Process. Journal Entry is the Process…

Q: On December 31 Wintergreen, Incorporated, issued $150,000 of 7 percent, 10-year bonds at a price of…

A: Journal entries are made to record the transactions as the first process in the books of accounts…

Q: A company received cash proceeds of $426,525 on a bond issue with a par value of $400,000. The…

A: Bond is a financial instrument issued by a company in order to raise funds. In exchange for funds,…

Q: Langdon & Co. issues bonds with a face value of $50,000 for $51,000. Each $1,000 bond carries 10…

A: We need to separate the value assigned to the bonds and the warrants.  As a first step we will…

Q: A company issued $500,000 of bonds for $498,351. Interest is paid semiannually. The bond markets and…

A: if bond is issued at lower value and redeemed at premium it is said to be issued at discounthere in…

Q: On May 1, 2020, Judice Company issued 400 $1,000 bonds at 104. Each bond was issued with two…

A: Bonds Payable: Bonds payable are referred to long-term debts of the business, issued to various…

Q: ws the holder to acquire one share of $1 par common stock for $40 per share. Immediately after the…

A: Answer : Market value of bond without warrant  =($1000*99%)*$50,000/1000 = $49,500  Market value of…

Warrants