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Prepare the journal entry to record the issuance of bonds

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Question - Hoffman Corporation issued $70 million of 5%, 15-year bonds at 102. Each of the 70,000 bonds was issued with 15 detachable stock warrants, each of which entitled the bondholder to purchase, for $30, one share of $1 par common stock. At the time of sale, the market value of the common stock was $35 per share and the market value of each warrant was $6. Prepare the journal entry to record the issuance of the bonds.

Reference no: EM133114278

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