Prepare journal entry for the conversion of bonds

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Gomez Company issues 8,000,000 of bonds with a coupon rate of 8%. to help the sale detachable stock warrants are issued a the rate of ten warrants for each 1,000 bond sold. It is estimated that the value of the bonds without the warrants is 7,896,000 and the value of teh warrants is 504,000. The bonds with the warrants sold at 101. Prepare a journal entry for the conversion of bonds into shares of stock.

Reference no: EM131204957

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