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
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Subject - Acounting
Transcribed Image Text:On April 7, 2025, Blossom Corporation sold a $5050000, twenty-year, 7 percent bond issue for $5353000. Each $1000 bond 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
Bonds Payable
Premium on Bonds Payable
20
27
What accounts and amounts should Blossom credit to record the sale of the bonds?
Paid-in Capital-Stock Warrants
Bonds Payable
Premium on Bonds Payable
Paid-in Capital-Stock Warrants
$5050000
33229
204121
$5050000
200746
102254
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