Problemon may 1 2017 grouper company issued 2400 1000 bonds, Ask an Expert

Accounting

Problem

On May 1, 2017, Grouper Company issued 2,400 $1,000 bonds at 102. Each bond was issued with one detachable stock warrant. Shortly after issuance, the bonds were selling at 99, but the fair value of the warrants cannot be determined.

(a) Prepare the entry to record the issuance of the bonds and warrants.

(b) Assume the same facts as part (a), except that the warrants had a fair value of $33. Prepare the entry to record the issuance of the bonds and warrants.

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Accounting Basics, Accounting

Category:- Accounting Basics
Reference No.:- M92751603

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