Hoffman Corporation issued $60 million of 5%, 20-year bonds at 102. Each of the 60,000 bonds was issued with 10 detachable stock warrants, each of which entitled the bondholder to purchase, for $20, one share of $1 par common stock. At the time of sale, the market value of the common stock was $25 per share and the market value of each warrant was $5. Prepare the journal entry to record the issuance of the bonds. (Enter your answers in millions rounded to 1 decimal place (i. e., 5,500,000 should be entered as 5.5). If no entry is required for a transaction/event, select "No journal entry required" in the first account field.)
Record the issuance of the bonds.
Note: Enter debits before credits.
Event General Journal Debit Credit
1 Cash
Discount on bonds payable
Bonds payable
Equity-stock warrants
Answers (1)
Know the Answer?
Not Sure About the Answer?
Get an answer to your question ✅ “Hoffman Corporation issued $60 million of 5%, 20-year bonds at 102. Each of the 60,000 bonds was issued with 10 detachable stock warrants, ...” in 📙 Business if there is no answer or all answers are wrong, use a search bar and try to find the answer among similar questions.
Search for Other Answers
You Might be Interested in
A student is interested in whether students who study with music playing devote as much attention to their studies as do students who study under quiet conditions (he believes that studying under quiet conditions leads to better attention).
Answers (1)
Operating in the southwestern states, lancer airlines hopes to avoid entering the price war that currently is taking place between several airlines on the east coast. the best strategy to avoid severe price competition is to:
Answers (2)
Would you prefer a fully taxable investment earning 8.1 percent or a tax-exempt investment earning 6.1 percent? (assume a 28 percent tax rate) why?
Answers (1)
Ito was driving through a rough part of town late at night when a stray bullet hit the front side of his head. Both the left and right sides of his prefrontal cortex were severely damaged.
Answers (1)
Kathy, a fashion model, witnessed a motor vehicle accident but did not stop because she was late for her pedicure and simply didn't want to get involved.
Answers (1)
New Questions in Business
Beth has just been hired as a cocktail waitress. she must be certified as a seller-server within:
Answers (1)
Ashbury Corporation reports 2016 and 2017 total revenues of $90.0 million and $100.8 million respectively. If we expect prior growth to persist, we would forecast a revenue growth rate of:A. 15%B. 12%C. 24%D. 9%E. None of the above
Answers (1)
At the beginning of the year, Smith, INc., budgeted the following: Units: 10,000 Sales: $100,000 Total variable expenses: $ 60,000 Total fixed expenses: $ 20,000 Variable factory overhead $ 30,000 Fixed factory overhead: $ 10,000 There were no
Answers (1)
Super Saver Groceries purchased store equipment for $35,500. Super Saver estimates that at the end of its 10-year service life, the equipment will be worth $3,500.
Answers (1)
What information goes into a credit score
Answers (1)