On July 1, 2020, Bridgeport Corporation issued $3,100,000 of 9% bonds payable in 20 years. The...
On May 1, 2020, Pearl Company issued 2,000 $1,000 bonds at 102. Each bond was issued with one detachable stock warrant. Shortly after issuance, the bonds were selling at 97, but the fair value of the warrants cannot be determined. (a) Prepare the entry to record the issuance of the bonds and warrants. (Credit account titles are automatically indented when amount is entered. Do not indent manually no entry is required, select "No Entry for the account titles and enter...
On January 1, 2020, Bridgeport Corporation issued $670,000 of 9% bonds, due in 10 years. The bonds were issued for $628,252, and pay interest each July 1 and January 1. Bridgeport uses the effective interest method. Prepare the company's journal entries for (a) the January 1 Issuance, (b) the July 1 interest payment, and (c) the December 31 adjusting entry. Assume an effective-interest rate of 10%. (Round intermediate calculations to 6 decimal places, e.g. 1.251247 and final answer to o...
Bridgeport Inc. has decided to raise additional capital by issuing $167,000 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 $118,400, and the value of the warrants in the market is $29,600. The bonds...
Exercise 16-9 On May 1, 2017, Marigold Company issued 2,300 $1,000 bonds at 102. Each bond was issued with one detachable stock warrant. Shortly after issuance, the bonds were selling at 99, but the fair value of the warrants cannot be determined. (a) Prepare the entry to record the issuance of the bonds and warrants. (Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account...
On July 1, 2020, Salem Corporation issued $800,000 of 7% bonds due in 10 years. The bonds pay cash interest semiannually. Each $1,000 bond includes a detachable stock purchase warrant. Each warrant gives the bondholder the right to purchase, for $30, one share of $1 par value common stock at any time during the next 10 years. The bonds were sold at 101. The value of the stock purchase rights at the time of issuance was $40,000. The bonds would...
On January 1, 2020, Pronghorn Corporation issued $610,000 of 9% bonds, due in 10 years. The bonds were issued for $651,453, and pay interest each July 1 and January 1. The effective-interest rate is 8%. Prepare the company's journal entries for (a) the January 1 issuance, (b) the July 1 interest payment, and (c) the December 31 adjusting entry. Pronghorn uses the effective-interest method. (Round intermediate calculations to 6 decimal places, e.g. 1.251247 and final answer to O decimal places,...
Just need the missing answer... cant figure it out. On May 1, 2020, Crane Company issued 1,900 $1,000 bonds at 102. Each bond was issued with one detachable stock warrant. Shortly after issuance, the bonds were selling at 97, but the fair value of the warrants cannot be determined. (a) Prepare the entry to record the issuance of the bonds and warrants. (Credit account titles are automatically indented when amount is entered Do not indent manually. If no entry is...
Blossom Corporation issued 1,200 $1,000 bonds at 103. Each bond was issued with one detachable stock warrant. After issuance, the bonds were selling separately at 97. The market price of the warrants without the bonds cannot be determined. Use the incremental method to record the issuance of the bonds and warrants. (Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter o...
On January 1, 2020, Sandhill Company issued $310,500, 9%, 5-year bonds at face value. Interest is payable annually on January 1. Prepare the journal entry to record the issuance of the bonds. (Credit account titles are automatically indented when amount is entered. Do not indent manually.) Date Account Titles and Explanation Debit Credit Jan. 1, 2020 Prepare the journal entry to record the accrual of interest on December 31, 2020. (Credit account titles are automatically indented when amount is entered....
On May 1, 2017, Ivanhoe Company issued 2,600 $1,000 bonds at 102. Each bond was issued with one detachable wock warrant. Shortly after Issuance, the bonds were seling at 99, but the fair value of the warrants cannot be determined () Prepare the entry to record the issuance of the bonds and warrants (Credite count foare automatically indented when entered Do not Indent manually. If no entry required, elect"No Entry for the account titles and enter for the amount.) Account...