Excercise 16-1 - Value of bonds plus warrants ($10,000,000...

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EXERCISE 16-1 (15–20 minutes) 1. Cash ($10,000,000 X .99). ............................... 9,900,000 Discount on Bonds Payable. ......................... 100,000 Bonds Payable. ........................................ 10,000,000 Unamortized Bond Issue Costs. .................... 70,000 Cash. ......................................................... 70,000 2. Cash. ................................................................ 9,800,000 Discount on Bonds Payable. ......................... 600,000 Bonds Payable. ........................................ 10,000,000 Paid-in Capital—Stock Warrants. ........... 400,000
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Unformatted text preview: Value of bonds plus warrants ($10,000,000 X .98) $9,800,000 Value of warrants (100,000 X $4) 400,000 Value of bonds $9,400,000 3. Debt Conversion Expense. ............................ 75,000 Bonds Payable. ............................................... 10,000,000 Discount on Bonds Payable. .................. 55,000 Common Stock. ........................................ 1,000,000 Paid-in Capital in Excess of Par. ............ 8,945,000* Cash. ......................................................... 75,000 *[($10,000,000 – $55,000) – $1,000,000]...
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This note was uploaded on 04/22/2010 for the course ACCT ACC552 taught by Professor Hint during the Spring '09 term at Keller Graduate School of Management.

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Excercise 16-1 - Value of bonds plus warrants ($10,000,000...

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