Novak Corporation issued 2.000 $1,000 bonds at 103. Each bond was issued with one detachable stock warrant. After issuance, the bonds were selling in the market at 99, and the warrants had a market price of $44 Use the proportional method to record the issuance of the bonds and warrants. (List all debit entries before credit entries. Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select "No Entry for the account titles and enter O for the amounts. Do not round intermediate calculations. Round your answers to O decimal places, e.g. 5,125) Account Titles and Explanation Cash Discount on Bonds Payable bonds payable Paid-in Capital-Stock Warrants Debit 2060000 20000 Credit 2000000 80000
Novak Corporation issued 2.000 $1,000 bonds at 103. Each bond was issued with one detachable stock warrant. After issuance, the bonds were selling in the market at 99, and the warrants had a market price of $44 Use the proportional method to record the issuance of the bonds and warrants. (List all debit entries before credit entries. Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select "No Entry for the account titles and enter O for the amounts. Do not round intermediate calculations. Round your answers to O decimal places, e.g. 5,125) Account Titles and Explanation Cash Discount on Bonds Payable bonds payable Paid-in Capital-Stock Warrants Debit 2060000 20000 Credit 2000000 80000
Chapter13: Long-term Liabilities
Section: Chapter Questions
Problem 16MC: Keys Inc. issued 100 bonds with a face value of $1,000 and a rate of 8% at $1,025 each. The journal...
Related questions
Question
naru
![Novak Corporation issued 2.000 $1,000 bonds at 103. Each bond was issued with one detachable stock warrant. After issuance, the
bonds were selling in the market at 99, and the warrants had a market price of $44
Use the proportional method to record the issuance of the bonds and warrants. (List all debit entries before credit entries. Credit account
titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles
and enter O for the amounts. Do not round intermediate calculations. Round your answers to O decimal places, e.g. 5,125.)
Account Titles and Explanation
Cash
Discount on Bonds Payable
bonds payable
Paid-in Capital-Stock Warrants
Debit
2060000
20000
Credit
2000000
80000](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F8600ca0e-7c73-45a3-9dda-710e42c5650f%2F0d0907ac-577e-4b9d-86a5-aa9061c7f813%2Fk58mxt_processed.jpeg&w=3840&q=75)
Transcribed Image Text:Novak Corporation issued 2.000 $1,000 bonds at 103. Each bond was issued with one detachable stock warrant. After issuance, the
bonds were selling in the market at 99, and the warrants had a market price of $44
Use the proportional method to record the issuance of the bonds and warrants. (List all debit entries before credit entries. Credit account
titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles
and enter O for the amounts. Do not round intermediate calculations. Round your answers to O decimal places, e.g. 5,125.)
Account Titles and Explanation
Cash
Discount on Bonds Payable
bonds payable
Paid-in Capital-Stock Warrants
Debit
2060000
20000
Credit
2000000
80000
Expert Solution
![](/static/compass_v2/shared-icons/check-mark.png)
This question has been solved!
Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.
This is a popular solution!
Trending now
This is a popular solution!
Step by step
Solved in 3 steps with 7 images
![Blurred answer](/static/compass_v2/solution-images/blurred-answer.jpg)
Knowledge Booster
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.Recommended textbooks for you
Principles of Accounting Volume 1
Accounting
ISBN:
9781947172685
Author:
OpenStax
Publisher:
OpenStax College
Principles of Accounting Volume 1
Accounting
ISBN:
9781947172685
Author:
OpenStax
Publisher:
OpenStax College