Text Book Question Pilsen Company issues 12% bonds with a face value of $10,000 and 600 shares of $10 par common stock in a combined sale, receiving total proceeds of $23,000 on December 31. Required: Record the transaction for each independent assumption shown: 1.The common stock has a current market value of $21 per share; the market value of the bonds is not known. 2.The common stock has a current market value of $24.50 per share; the bonds are selling at 98.
Text Book Question Pilsen Company issues 12% bonds with a face value of $10,000 and 600 shares of $10 par common stock in a combined sale, receiving total proceeds of $23,000 on December 31. Required: Record the transaction for each independent assumption shown: 1.The common stock has a current market value of $21 per share; the market value of the bonds is not known. 2.The common stock has a current market value of $24.50 per share; the bonds are selling at 98.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Text Book Question
Pilsen Company issues 12% bonds with a face value of $10,000 and 600 shares of $10 par common stock in a combined sale, receiving total proceeds of $23,000 on December 31.
Required:
Record the transaction for each independent assumption shown:
1.The common stock has a current market value of $21 per share; the market
2.The common stock has a current market value of $24.50 per share; the bonds are selling at 98.
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