Prepare the appropriate analysis for transactions

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Problem 1: Prepare the appropriate analysis and journal entries for these transactions. use effective interest method amortization

During 2021, on July 1, Holiday issued $12,500,000, 7%, 10-year bonds at 103. Each bond has 8 detachable stock warrants. The fair value of the bonds without the warrants was $13,250,000. The fair value of the warrants is $1,812,500. The exercise price of the warrants is $30 per share. As of the end of 2021, none of the warrants had been exercised.

Reference no: EM132654652

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