On May 1, 2021, Swifty Corporation issued $1410000 of 8% bonds at 104, which are due on April 30, 2031. Twenty detachable stock warrants entitling the holder to purchase for $40 one share of Swifty's common stock, $15 par value, were attached to each $1,000 bond. The bonds without the warrants would sell at 95. On May 1, 2021, the fair value of Swifty's common stock was $35 per share and of the warrants was $2. On May 1, 2021, Swifty should credit Paid-in Capital from Stock Warrants for $59248. $55048. O $102448. O $56400.

On May 1, 2021, Swifty Corporation issued $1410000 of 8% bonds at 104, which are due on April 30, 2031. Twenty detachable stock warrants entitling the holder to purchase for $40 one share of Swifty's common stock, $15 par value, were attached to each $1,000 bond. The bonds without the warrants would sell at 95. On May 1, 2021, the fair value of Swifty's common stock was $35 per share and of the warrants was $2. On May 1, 2021, Swifty should credit Paid-in Capital from Stock Warrants for $59248. $55048. O $102448. O $56400.

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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