a | |||
Market value of bonds | 138400 | ||
Market value of warrants | 34600 | ||
Total Market value | 173000 | ||
Value assigned to bonds | 119600 | =149500*138400/173000 | |
Value assigned to warrants | 29900 | =149500*34600/173000 | |
Account Titles and Explanation | Debit | Credit | |
Cash | 149500 | ||
Discount on Bonds Payable | 65400 | ||
Bonds Payable | 185000 | ||
Paid-in Capital - Stock Warrants | 29900 | ||
b1 | |||
Account Titles and Explanation | Debit | Credit | |
Cash | 149500 | ||
Discount on Bonds Payable | 35500 | ||
Bonds Payable | 185000 |
Ayayai Inc. has decided to raise additional capital by issuing $185,000 face value of bonds with...
Pina Inc. has decided to raise additional capital by issuing $168,000 face value of bonds with a coupon rate of 9%. In discussions with investment bankers, it was determined that to help the sale of the bonds, detachable stock warrants should be issued at the rate of one warrant for each $100 bond sold. The value of the bonds without the warrants is considered to be $154,800, and the value of the warrants in the market is $17,200. The bonds...
Sandhill Inc. has decided to raise additional capital by issuing $187,000 face value of bonds with a coupon rate of 9%. In discussions with investment bankers, it was determined that to help the sale of the bonds, detachable stock warrants should be issued at the rate of one warrant for each $100 bond sold. The value of the bonds without the warrants is considered to be $121,600, and the value of the warrants in the market is $30,400. The bonds...
Coronado Inc. has decided to raise additional capital by issuing $168,000 face value of bonds with a coupon rate of 9%. In discussions with investment bankers, it was determined that to help the sale of the bonds, detachable stock warrants should be issued at the rate of one warrant for each $100 bond sold. The value of the bonds without the warrants is considered to be $138,550, and the value of the warrants in the market is $24.450. The bonds...
Blue Inc. has decided to raise additional capital by issuing $185,000 face value of bonds with a coupon rate of 10%. In discussions with investment bankers, it was determined that to help the sale of the bonds, detachable stock warrants should be issued at the rate of one warrant for each $100 bond sold. The value of the bonds without the warrants is considered to be $126,400, and the value of the warrants in the market is $31,600. The bonds...
Nash Inc. has decided to raise additional capital by Issuing $168.000 face value of bonds with a coupon rate of 9%. In discussions with investment bankers, it was determined that to help the sale of the bonds, detachable stock warrants should be issued at the rate of one warrant for each $100 bond sold. The value of the bonds without the warrants is considered to be $154,800, and the value of the warrants in the market is $17.200. The bonds...
Exercise 16-07 Illiad Inc. has decided to raise additional capital by issuing $170,000 face value of bonds with a coupon rate of 10%. In discussions with investment bankers, it was determined that to help the sale of the bonds, detachable stock warrants should be issued at the rate of one warrant for each $100 bond sold. The value of the bonds without the warrants is considered to be $136,000, and the value of the warrants in the market is $24,000....
* Question 8 Riverbed Inc. has decided to raise additional capital by issuing $177,000 face value of bonds with a coupon rate of 11% In discussions with investment bankers, it was determined that to help the sale of the bonds, detachable stock warrants should be issued at the rate of one warrant for each $100 bond sold. The value of the bonds without the warrants is considered to be $123,200, and the value of the warrants in the market is...
Sheffield Inc. has decided to raise additional capital by issuing $175,000 face value of bonds with a coupon rate of 10%. In discussions with investment bankers, it was determined that to help the sale of the bonds, detachable stock warrants should be issued at the rate of one warrant for each $100 bond sold. The value of the bonds without the warrants is considered to be $126,650, and the value of the warrants in the market is $22,350. The bonds...
Blossom Inc. has decided to raise additional capital by issuing $183,000 face value of bonds with a coupon rate of 9%. In discussions with investment bankers, it was determined that to help the sale of the bonds, detachable stock warrants should be issued at the rate of one warrant for each $100 bond sold. The value of the bonds without the warrants is considered to be $153,900, and the value of the warrants in the market is $17,100. The bonds...
Exercise 16-07 Coronado Inc. has decided to raise additional capital by issuing $178,000 face value of bonds with a coupon rate of 10%. In discussions with investment bankers, it was determined that to help the sale of the bonds, detachable Stock warrants should be issued at the rate of one warrant for each 100 bond sold. The value of the bonds without the warrants is considered to be $142,200, and the value of the warrants in the market is $15.800....