8. On May 1, 2012, Marly Co. issued $500,000 of 7% bonds at 103, which...
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8. On May 1, 2012, Marly Co. issued $500,000 of 7% bonds at 103, which are due on April 30, 2022. Twenty detachable stock warrants entitling the holder to purchase for $40 one share of Marlys ordinary shares $15 par value, were attached to each $1,000 bond. The bonds without the warrants would sell at 96. On May 1, 2012, the fair value of Marlys shares was $35 per share and of the warrants was $2.
On May 1, 2012, Marly should record bonds payable at
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