
a.
The issue price of the bond.
Given information:
Company issued bonds worth $3,000,000.
Term period for conversion is 5 years
Market rate of interest is 15%.
b.
To prepare: The
c.
To prepare: The journal entry to record issuance of the bonds assuming warrants as non-detachable using proportionate method.
d.
To prepare: The journal entry to record issuance of the bonds assuming warrants as detachable using the incremental method
e.
To prepare: Journal using proportionate method for recording exercise of all warrants.
f.
To prepare: Journal using incremental method for recording exercise of all warrants.
g.
The effects of the bonds and detachable warrants using proportional versus the incremental method in the financial statements.

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Chapter 14 Solutions
Intermediate Accounting Plus Mylab Accounting With Pearson Etext -- Access Card Package (2nd Edition)
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