Create in general journal format entry to record issuance

Assignment Help Accounting Basics

Reference no: EM131975479

Problem

On September 1, 2017, Windsor Company sold at 104 (plus accrued interest) 5,760 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 $14 per share. Shortly after issuance, the warrants were quoted on the market for $3 each. No fair value can be determined for the Windsor Company bonds. Interest is payable on December 1 and June 1. Bond issue costs of $38,800 were incurred.

Prepare in general journal format the entry to record the issuance of the bonds.

Reference no: EM131975479

Questions Cloud

What was the company taxable income : The company's depreciation expense for the year was $300, interest expense was $200, and the average tax rate is 30%.

Prepare the journal entries in airbus point of view : September 10, Airbus company acquires First Solar 104,040,000 share at 33.54€ for a total of €3489.501.600. Prepare the journal entries in Airbus point of view.

Find the firm typical value for accounts receivable period : A firm offers terms of 3/50, net 80. Currently, two-thirds of all customers take advantage of the trade discount; the remainder pay bills at the due date.

How much would you be willing to pay for each of investment : If the required return for both is 8%, which one do you prefer? How much would you be willing to pay for each of these investments?

Create in general journal format entry to record issuance : On September 1, 2017, Windsor Company sold at 104 (plus accrued interest). Create in general journal format the entry to record the issuance of the bonds.

What is the net present value of more attractive alternative : A firm that purchases electricity from the local utility for $200,000 per year is considering installing a steam generator at a cost of $290,000.

How much is this annuity worth 5 years from now : A six-year annuity of $10000 quarterly payments will begin 8 years from now. The discount rate is 9%, compounded quarterly.

Calculate the unit cost : During November, 9,600 components were completed. There is no beginning or ending WIP in any department. Calculate the unit cost

What date will settlement take place : If the enter into FRA on the date 2018/04/16 , on what date will settlement take place?

User Account

All Pages