Question

Ivanhoe Company issued $12.000.000 par ex bonds at One deachable stock purchase wat was with each $100 parvatubond. At the time of dance, the warrants were selling for $2 Gede accounts are automatically indented when amount is entered. Do not indet manuality s e ctory for the courts and enter the amounts Account Titles and Explanation Debit

Answer 1

Sl No.	Account Titles & Explanation	Debit	Credit
1	Cash	$ 1,17,60,000
	Discount on bond payable	$      6,00,000
	Bonds Payable		$ 1,20,00,000
	Paid in Capital Stock Warrant		$      3,60,000
	(being bonds and warrants issued)
	Working-
	Value of Bond plus warrants-
	(120000*98)	$ 1,17,60,000
	Warrants - (120000*3)	$      3,60,000
	Value of bonds	$ 1,14,00,000
	Discount on bonds	$      6,00,000
	(1,20,00,000-1,14,00,000)
2	Cash (120000*98)	$ 1,17,60,000
	Discount on bond payable (120000*2)	$      2,40,000
	Bonds Payable		$ 1,20,00,000
	(being bonds issued)
3	Debt Conversion Expense	$         28,000
	Bonds Payable	$    37,00,000
	Discount on bonds payable		$         25,000
	Common Stock		$      4,62,500
	Paid in Capital in excess of par		$    32,12,500
	Cash		$         28,000
	(being bonds converted into common Stock)
	Note-
	Paid in capital in excess of par = [ (3700000-25000)- 462500]