CH16 - E16-1 Coyle Corp. Journal Entries Jan. 1 Cash...

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E16-1 Coyle Corp. Journal Entries Jan. 1 Cash ($10,000,000 x .99) 9,900,000 Discount on Bonds Payable 100,000 Bonds Payable 10,000,000 70,000 Cash 70,000 2 9,800,000 600,000 Bonds Payable 10,000,000 Paid-in Capital - Stock Warrants ($10,000,000/100 x $4) 400,000 9,800,000 Value of warrants ($100,000 X $4) 400,000 Value of bonds 9,400,000 3 75,000 10,000,000 Discount on Bonds Payable 55,000 Common Stock 1,000,000 8,945,000 Cash 75,000 Number Amount Price Total Percent Bonds 100,000 = - 0% Warrants 100,000 $4 = 400,000 100% Total Fair Market Value 400,000 100% Allocation: Bonds Issue price $9,800,000 Bond face value $10,000,000 Warrants 400,000 Allocated FMV 9,400,000 Bonds $9,400,000 Discount $600,000 Unamortized Bond Issue Costs Cash ($10000000 x .98) Discount on Bonds Payable Value of bonds plus warrants ($10,000,000 X .98) Debt Conversion Expense Bonds Payable Paid-in Capital in Excess of Par [($10,000,000 - $55,000) - $1,000,000]
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E16-8 Jacob Company Journal Entries Sep. 1 Cash 3,150,000 Unamortized Bond Issue Costs 30,000 Bonds Payable (3,000x$1,000) 3,000,000 102,000 Paid-in Capital - Stock Warrants (3,000 x 2 x $3) 18,000 Bond Interest Expense [3,000,000x8%x(3/12)] 60,000 ( To record the issuance of the bonds)
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CH16 - E16-1 Coyle Corp. Journal Entries Jan. 1 Cash...

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