Bonds with Warrants: Sometimes, to make the bond issues attractive, corporations issue bonds with warrants. Warrant holders are entitled to acquire shares of the corporations upon payment of a certain amount of money. The warrants have to be exercised with a stated period of time. Warrants can be detachable or not detachable. (a) To prepare: To prepare journal entries to record: the issuance of the bonds. the issuance of warrants. Given information: Bonds: 2,000. Par: $1,000. Issue price: $102. Selling price: $98. Warrants fair value: $30.

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Answer 1

Question

Chapter 16, Problem 9E

To determine

Bonds with Warrants: Sometimes, to make the bond issues attractive, corporations issue bonds with warrants. Warrant holders are entitled to acquire shares of the corporations upon payment of a certain amount of money. The warrants have to be exercised with a stated period of time. Warrants can be detachable or not detachable.

(a) To prepare: To prepare journal entries to record:

the issuance of the bonds.

the issuance of warrants.

Given information: Bonds: 2,000.

Par: $1,000.

Issue price: $102.

Selling price: $98.

Warrants fair value: $30.

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Answer 2

Question

Chapter 16, Problem 9E

To determine

Bonds with Warrants: Sometimes, to make the bond issues attractive, corporations issue bonds with warrants. Warrant holders are entitled to acquire shares of the corporations upon payment of a certain amount of money. The warrants have to be exercised with a stated period of time. Warrants can be detachable or not detachable.

(a) To prepare: To prepare journal entries to record:

the issuance of the bonds.

the issuance of warrants.

Given information: Bonds: 2,000.

Par: $1,000.

Issue price: $102.

Selling price: $98.

Warrants fair value: $30.

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Answer 3

Question

Chapter 16, Problem 9E

To determine

Bonds with Warrants: Sometimes, to make the bond issues attractive, corporations issue bonds with warrants. Warrant holders are entitled to acquire shares of the corporations upon payment of a certain amount of money. The warrants have to be exercised with a stated period of time. Warrants can be detachable or not detachable.

(a) To prepare: To prepare journal entries to record:

the issuance of the bonds.

the issuance of warrants.

Given information: Bonds: 2,000.

Par: $1,000.

Issue price: $102.

Selling price: $98.

Warrants fair value: $30.

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Answer 4

Question

Chapter 16, Problem 9E

To determine

Bonds with Warrants: Sometimes, to make the bond issues attractive, corporations issue bonds with warrants. Warrant holders are entitled to acquire shares of the corporations upon payment of a certain amount of money. The warrants have to be exercised with a stated period of time. Warrants can be detachable or not detachable.

(a) To prepare: To prepare journal entries to record:

the issuance of the bonds.

the issuance of warrants.

Given information: Bonds: 2,000.

Par: $1,000.

Issue price: $102.

Selling price: $98.

Warrants fair value: $30.

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Answer 5

Chapter 16, Problem 9E

To determine

Bonds with Warrants: Sometimes, to make the bond issues attractive, corporations issue bonds with warrants. Warrant holders are entitled to acquire shares of the corporations upon payment of a certain amount of money. The warrants have to be exercised with a stated period of time. Warrants can be detachable or not detachable.

(a) To prepare: To prepare journal entries to record:

the issuance of the bonds.

the issuance of warrants.

Given information: Bonds: 2,000.

Par: $1,000.

Issue price: $102.

Selling price: $98.

Warrants fair value: $30.

Answer 6

Chapter 16, Problem 9E

To determine

Bonds with Warrants: Sometimes, to make the bond issues attractive, corporations issue bonds with warrants. Warrant holders are entitled to acquire shares of the corporations upon payment of a certain amount of money. The warrants have to be exercised with a stated period of time. Warrants can be detachable or not detachable.

(a) To prepare: To prepare journal entries to record:

the issuance of the bonds.

the issuance of warrants.

Given information: Bonds: 2,000.

Par: $1,000.

Issue price: $102.

Selling price: $98.

Warrants fair value: $30.

Answer 7

Chapter 16, Problem 9E

To determine

Bonds with Warrants: Sometimes, to make the bond issues attractive, corporations issue bonds with warrants. Warrant holders are entitled to acquire shares of the corporations upon payment of a certain amount of money. The warrants have to be exercised with a stated period of time. Warrants can be detachable or not detachable.

(a) To prepare: To prepare journal entries to record:

the issuance of the bonds.

the issuance of warrants.

Given information: Bonds: 2,000.

Par: $1,000.

Issue price: $102.

Selling price: $98.

Warrants fair value: $30.

Answer 8

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Answer 9

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Answer 10

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Answer 11

Ch. 16 - Prob. 1Q Ch. 16 - 2. Briefly explain why corporations issue...Ch. 16 - 3. Discuss the similarities and the differences...Ch. 16 - 4. Bridgewater Corp. offered holders of its 1,000...Ch. 16 - 5. Explain how the conversion feature of...Ch. 16 - Prob. 6Q Ch. 16 - Prob. 7Q Ch. 16 - Prob. 8Q Ch. 16 - Prob. 9Q Ch. 16 - Prob. 10Q

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