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
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ISBN:9781259964947
Author:Libby
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Chapter1: Financial Statements And Business Decisions
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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.
O $55048.
O $102448.
O $56400.
Transcribed Image Text: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. O $55048. O $102448. O $56400.
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