salatiel
Apr 21, 2009, 06:27 PM
I been trying to understand this problem?
on june 1, 2008, it was issued $2 million of 12% bonds payable in 10 years. The bonds pay interest semianually . the bonds include detachable warrants giving the bondholder the right to buy for $30, one share of $1 pay value common stock at any time during the next 10 years. The bonds were sold for $2 million. the value of the warrants at the time of issuance was $200,000. How can I make entries to record the issuance of the bonds.
on june 1, 2008, it was issued $2 million of 12% bonds payable in 10 years. The bonds pay interest semianually . the bonds include detachable warrants giving the bondholder the right to buy for $30, one share of $1 pay value common stock at any time during the next 10 years. The bonds were sold for $2 million. the value of the warrants at the time of issuance was $200,000. How can I make entries to record the issuance of the bonds.