Recording the Issuance of Bonds with Detachable Warrants On December 1, 2020, Junction Company issued at 104, 3,600 of its 9%, 10-year, $1,000 par value, nonconvertible bonds with detachable stock purchase warrants. Each bond carried two detachable warrants; each warrant was for one share of common stock at a specified option price of $15 per share. Shortly after issuance, the warrants were quoted on the market for $3 each. No fair value can be determined for the bonds without the warrants. Interest is payable on December 1 and June 1. Provide the entry to record issuance of the bonds by Junction Company on December 1, 2020. Note: List multiple debits or credits (when applicable) in alphabetical order. Date Account Name Dr. Cr. Jan. 1, 2020 Answer Answer Answer Answer Answer Answer Answer Answer Answer Answer Answer Answer
Recording the Issuance of Bonds with Detachable Warrants
On December 1, 2020, Junction Company issued at 104, 3,600 of its 9%, 10-year, $1,000 par value, nonconvertible bonds with detachable stock purchase warrants. Each bond carried two detachable warrants; each warrant was for one share of common stock at a specified option price of $15 per share. Shortly after issuance, the warrants were quoted on the market for $3 each. No fair value can be determined for the bonds without the warrants. Interest is payable on December 1 and June 1. Provide the entry to record issuance of the bonds by Junction Company on December 1, 2020.
Note: List multiple debits or credits (when applicable) in alphabetical order.
Date | Account Name | Dr. | Cr. |
---|---|---|---|
Jan. 1, 2020 | Answer | Answer | Answer |
Answer | Answer | Answer | |
Answer | Answer | Answer | |
Answer | Answer | Answer |
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