bumpydumper
05.03.2021 •
Business
Hoffman Corporation issued $65 million of 5%, 20-year bonds at 104. Each of the 65,000 bonds was issued with 15 detachable stock warrants, each of which entitled the bondholder to purchase, for $26, one share of $1 par common stock. At the time of sale, the market value of the common stock was $31 per share and the market value of each warrant was $4. Prepare the journal entry to record the issuance of the bonds. (Enter your answers in millions rounded to 1 decimal place (i.e., 5,500,000 should be entered as 5.5). If no entry is required for a transaction/event, select "No journal entry required" in the first account field.)
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Ответ:
Dr Cash $ 67.6 million
Dr Discount on bonds payable
$ 1.3 million
Cr Bonds payable 65million
Cr Equity-stock warrants outstanding $3.9million
Explanation:
Preparation of the journal entry to record the issuance of the bonds
Dr Cash $ 67.6 million
(65,000,000 * 104/100 = $ 67.6 million)
Dr Discount on bonds payable
$ 1.3 million
($65million+$3.9 million-$67.6million)
Cr Bonds payable 65 million
Cr Equity-stock warrants outstanding $3.9million
($4× 15 warrants × 65,000 bonds = $3.9million)
(Being To record issuance of bonds)
Ответ:
What grade are u in
Explanation:
But it’s critical