Percent of the face value of one bond

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Reference no: EM13127222

Capius Corporation issued 2000 bonds in $1000 individual denominations. Each bond has twenty detachable warrants. The bonds and warrants were sold at 110. At the time the bond were issued each warrant had a market value to one percent of the face value of one bond. Capius will account for this transaction as:

A) Bond payable with an unamortized premium and a credit to Additional Paid In Capital Warrants

B) Bond payable with an unamortized premium and a debit to Additional Paid In Capital Warrants

C) Bond payable with an unamortized discount and a credit to Additional Paid In Capital Warrants

D) Bond payable with an unamortized discount and a debit to Additional Paid In Capital Warrants

Reference no: EM13127222

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