Show the financial statement effects at the date of issue

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Reference no: EM13901711

BONDS ISSUED WITH DETACHABLE WARRANTS. Assume that Motorola, Inc., issues bonds with a face value of $10,000,000 for $9,200,000. The bonds have detachable warrants that may be traded in for shares of common stock. Assume that immediately after issue, bonds with warrants detached trade for $9,000,000; the warrants, for $ 400,000. Use the template below to show the financial statement effects at the date of issue.

 

 

 

Assets

=

Liabilities

+

Shareholders' Equity

CC

AOCI

RE

 

 

 

 

 

 

 

 

Journal entry:

Reference no: EM13901711

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