Hoosier Co. sold $300,000 of 10% bonds for $311,600. Each $1,000 bond carried ten warrants and each warrant allowed the holder to acquire one share of $10 par value common stock for $25 a share. After the issuance of the securities, the bonds were quoted at 103.5 and each warrant was quoted at $9.
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Required:
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Prepare the entry to record the sale of the bonds.
What will be an ideal response?
Cash | 311,600 | ? | |
Discount on Bonds Payable | 13,328 | ? | |
? | Bonds Payable | ? | 300,000 |
? | Common Stock Warrants | ? | 24,928 |
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