On september 1 2012 jacob company sold at 104 plus accrued, Ask an Expert

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On September 1, 2012, Jacob Company sold at 104 (plus accrued interest) 3,120 of its 9%, 10-year, $1,000 face value, nonconvertible bonds with detachable stock warrants. Each bond carried two detachable warrants. Each warrant was for one share of common stock at a specified option price of $17 per share. Shortly after issuance, the warrants were quoted on the market for $3 each. No fair value can be determined for the Jacob Company bonds. Interest is payable on December 1 and June 1. Bond issue costs of $39,800 were incurred.
Prepare in general journal format the entry to record the issuance of the bonds. (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 0 for the amounts.)

Account Titles and Explanation	Debit	Credit

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Accounting Basics, Accounting

Category:- Accounting Basics
Reference No.:- M9943809

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