On February 1, 20x1, Bach Inc. issued $4,000,000, 10-year, 12% bonds for $4,080,000. Each $1,000...
50.1K
Verified Solution
Link Copied!
Question
Accounting
On February 1, 20x1, Bach Inc. issued $4,000,000, 10-year, 12% bonds for $4,080,000. Each $1,000 bond had a detachable warrant for purchasing one share of Bachs $40 common stock for $62. Immediately after the bonds were issued, Bachs securities had the following market values:
Common stock, $40 par - $58
Warrant - 10
12% bond without warrant - 1,040 On July 15,
20x1, all stock warrants were exercised when the stock price was $75 per share.
Required: Prepare the journal entries to record the following (rounded to 2 decimal places):
(1) Issuance of bonds with stock warrants
(2) Exercise of stock warrants
Answer & Explanation
Solved by verified expert
Get Answers to Unlimited Questions
Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!
Membership Benefits:
Unlimited Question Access with detailed Answers
Zin AI - 3 Million Words
10 Dall-E 3 Images
20 Plot Generations
Conversation with Dialogue Memory
No Ads, Ever!
Access to Our Best AI Platform: Flex AI - Your personal assistant for all your inquiries!
