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XYZ industries issued $2,000,000 of 3 year bonds on January 1,2022. The bonds...

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Accounting

XYZ industries issued $2,000,000 of 3 year bonds on January 1,2022. The bonds have a stated rate of 8% and interest is payable annually. The market rate for similar bonds is 10%.
a. Draw a timeline showing the cash flows associated with this bond.
b. What is the amount of cash this bond issuance raised?
c. Assume the bonds were issued with 60,000 detachable stock warrants with a strike price of $50 each. At issuance, similar bonds without warrants sold for 92. Write the journa entry to show the issuance of the bonds with warrants.
d. Assume that 50% of the bonds were retired at 98 when the Carrying value of the bonds was $1,968,000. Write the journal entry to show the retirement.
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