What albarren should record the bonds with a

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On May 1, 2019, Albarren Co. issued $900,000 of 7% bonds at 103, which are due on April 30, 2029. Twenty detachable stock warrants entitling the holder to purchase for $40 one share of Albarren's common stock, $15 par value, were attached to each $1,000 bond. The bonds without the warrants would sell at 96. On May 1, 2019, the fair value of Albarren's common stock was $35 per share and of the warrants was $2.

Problem 1: On May 1, 2019, Albarren should credit Paid-in Capital from Stock Warrants for

Problem 2: On May 1, 2019, Albarren should record the bonds with a

Reference no: EM132828307

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