Answer | |||
Value assigned to bonds |
$ 139,050 | 154500/(142200+15800)*142200 | |
Value assigned to warrants | $ 15,450 | 154500/(142200+15800)*15800 | |
a) | |||
Account Title | Debit | Credit | |
Cash | $ 154,500 | ||
Discount on Bonds Payable | $ 38,950 | 178000-139050 | |
Bonds Payable | $178,000 | ||
Paid-in Capital - Stock Warrants | $ 15,450 | ||
b1) | |||
Account Title | Debit | Credit | |
Cash |
$ 154,500 | ||
Discount on Bonds payable | $ 23,500 | 178000-154500 | |
Bonds payable | $178,000 | ||
Exercise 16-07 Coronado Inc. has decided to raise additional capital by issuing $178,000 face value of...
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