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Prepare journal entry to record the issue of bonds

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Z Inc. issues $8,000,000 of bonds with a coupon rate of 9%. To help the sale, detachable stock warrants are issued at the rate of ten warrants for each $2,000 bond sold. It is estimated that the value of the bonds without the warrants is $7,898,000 and the value of the warrants is $505,000. The bonds with the warrants sold at 101.

Question 1: Prepare journal entry to record the issue of bonds. This exercise is a Premium or Discount? And what will be the journal entry

Reference no: EM132463957

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