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Journal Entry of notes with warrants
On January 1, 2008, Biron Corp. Issued $1.2 million of five-year, zero-interest bearing notes along with warrants to buy 1 million common shares at $20 per share. On January 1, 2008, Biron had 9.6 million common shares outstanding and the market price was $19 per share. Biron Corp. Received $1 million for the notes and warrants. If offered alone, on January 1, 2008, the notes would have been issued to yield 12% to the creditor.
A) Prepare the journal entry(ies) to record the issuance of the zero-interest bearing notes and warrants for the cash conideration that was received. B) Prepare adjusting journal entries for Biron Corp. At the end of its fiscal year of December 31, 2008. |
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