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
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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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
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