Question

Current Attempt in Progress Ayayai Corporation issued 2,100 $1,000 bonds at 103. Each bond was issued with one detachable stock warrant. After issuance, bonds were selling in the market at 98, and the warrants had a market price of $41. Use the proportional method to record the issuance of the bonds and warrants. (Credit account titles are automatically indented with amount is entered. Do not indent manually. If no entry is required, select "No Entry for the account titles and enter for the amounts Rour intermediate calculations to 5 decimal places, eg. 1.24687 and final answers to decimal places, eg 5,125.) Debit Credit Account Titles and Explanation

Answer 1

solution working Notes: Bond Issue proceeds proportionately allocated to bondes & 2163000 x 980/1980 +41] 2076141 Discount on bonde payable 2100000 2076141 = 23859 Account title & Explanation Debit Credit 2163000 23859 Cash (2100X1000 X 103.%] Discount on Bonds payable Bonde payable paid in capital stock warrants 2100000 86859