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Unformatted text preview: APIC- warrants 24,876 APIC expired warrants 24,876 Incremental Method (used when one of the securities, either the bonds or the warrants, does not have a FMV) Allocate the $1,000,000 as shown on the original Illustration 16-3. Journal entry to record the issue of the bonds: Cash 1,000,000 Discount 30,000 Bonds Payable 1,000,000 APIC warrants 30,000 Now assume all the warrants are exercised. Cash 15,000 APIC warrants 30,000 Common Stock 10,000 APIC- Common 35,000 Instead, assume that the warrants expire and are not exercised APIC- warrants 30,000 APIC expired warrants 30,000...
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This note was uploaded on 03/16/2010 for the course BUSACC 1205 taught by Professor Boyas during the Spring '10 term at Pittsburgh.
- Spring '10