Your answer is partially correct. BDM Corporation issued 1,200, ten year, 7% bonds for 105 on January 1, 2023. Interest is paid annually. Each $500 bond carried a detachable warrant allowing the holder to purchase 210 common shares in BDM at $15 per share, the price at which BD shares were trading on the day of the sale of the bonds. Similar straight bonds trading on the open market paid 8%. On June 30, 2023, 180 of the bond holders exercised the options to buy the shares. Prepare the journal entries to record these events. (Round present value factor calculations to 5 decimal places, eg. 1.25124 and the final answer to 0 decimal places eg. 58,971. If no entry is required, select "No Entry" for the account titles and enter O for the amoun Credit account titles are automatically indented when the amount is entered. Do not indent manually. List all debit entries before credit entries.) Account Titles and Explanation Date January 1, 2023 v June 30, 2023 V Cash Bonds Payable Contributed Surplus- Stock Warrants Cash Contributed Surplus Stock Warrants Common Shares Debit 630,000 567,000 Credit 100000 600000 30000 37,800 529,200

Your answer is partially correct. BDM Corporation issued 1,200, ten year, 7% bonds for 105 on January 1, 2023. Interest is paid annually. Each $500 bond carried a detachable warrant allowing the holder to purchase 210 common shares in BDM at $15 per share, the price at which BD shares were trading on the day of the sale of the bonds. Similar straight bonds trading on the open market paid 8%. On June 30, 2023, 180 of the bond holders exercised the options to buy the shares. Prepare the journal entries to record these events. (Round present value factor calculations to 5 decimal places, eg. 1.25124 and the final answer to 0 decimal places eg. 58,971. If no entry is required, select "No Entry" for the account titles and enter O for the amoun Credit account titles are automatically indented when the amount is entered. Do not indent manually. List all debit entries before credit entries.) Account Titles and Explanation Date January 1, 2023 v June 30, 2023 V Cash Bonds Payable Contributed Surplus- Stock Warrants Cash Contributed Surplus Stock Warrants Common Shares Debit 630,000 567,000 Credit 100000 600000 30000 37,800 529,200

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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