On July 1, 2017, Roberts Corporation issued $3,000,000 of9% bonds payable in 20 years. The bonds include detachablewarrants giving the bondholder the right to purchasefor $30 one share of $1 par value common stock atany time during the next 10 years. The bonds were soldfor $3,000,000. The value of the warrants at the time ofissuance was $100,000. Prepare the journal entry to recordthis transaction.

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
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Chapter1: Financial Statements And Business Decisions
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On July 1, 2017, Roberts Corporation issued $3,000,000 of
9% bonds payable in 20 years. The bonds include detachable
warrants giving the bondholder the right to purchase
for $30 one share of $1 par value common stock at
any time during the next 10 years. The bonds were sold
for $3,000,000. The value of the warrants at the time of
issuance was $100,000. Prepare the journal entry to record
this transaction.

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