On May 1, 2017, Bramble Company issued 1,400 $1,000 bonds at102. Each bond was issued with one detachable stock warrant.Shortly after issuance, the bonds were selling at 97, but the fairvalue of the warrants cannot be determined.
(a) Prepare the entry to record the issuance ofthe bonds and warrants. (Credit account titles areautomatically indented when amount is entered. Do not indentmanually. If no entry is required, select "No Entry" for theaccount titles and enter 0 for theamounts.)
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(b) Assume the same facts as part (a), except thatthe warrants had a fair value of $37. Prepare the entry to recordthe issuance of the bonds and warrants. (Credit accounttitles are automatically indented when amount is entered. Do notindent manually. If no entry is required, select "No Entry" for theaccount titles and enter 0 for the amounts. Round intermediatecalculations to 5 decimal places, e.g. 1.24687 and final answers to0 decimal places, e.g. 5,125.)
Account Titles and Explanation | Debit | Credit |
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