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Excercise 16-8 - 3,000,000 120,000 Deduct value assigned to...

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EXERCISE 16-8 (10–15 minutes) JACOB COMPANY Journal Entry September 1, 2010 Cash ($3,120,000 + $60,000 – $30,000) .................... 3,150,000 Unamortized Bond Issue Costs ............................... 30,000 Bonds Payable (3,000 X $1,000) ....................... 3,000,000 Premium on Bonds Payable—Schedule 1 ....... 102,000 Paid-in Capital—Stock Warrants— Schedule 1 ...................................................... 18,000 Bond Interest Expense—Schedule 2 ............... 60,000 (To record the issuance of the bonds) Schedule 1 Premium on Bonds Payable and Value of Stock Warrants Sales price (3,000 X $1,040) ....................................................... $3,120,000 Face value of bonds ....................................................................
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Unformatted text preview: 3,000,000 120,000 Deduct value assigned to stock warrants (3,000 X 2 = 6,000; 6,000 X $3). ................................................. 18,000 Premium on bonds payable. ...................................................... $ 102,000 Schedule 2 Accrued Bond Interest to Date of Sale Face value of bonds. ................................................................... $3,000,000 Interest rate. ................................................................................. 8% Annual interest. ........................................................................... $ 240,000 Accrued interest for 3 months – ($240,000 X 3/12). ................. $ 60,000...
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