Prepare entry to record issuance of bonds and warrant

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Reference no: EM13138104

On May 1, 2010, Barkley Company issued 3,630 $1,000 bonds at 102. Each bond was issued with one detachable stock warrant. Shortly after issuance, the bonds were selling at 98, but the market value of the warrants cannot be determined. (List multiple debit/credit entries from largest to smallest amount, e.g. 10, 5, 2.)

(a) Prepare the entry to record the issuance of the bonds and warrants.

Description/Account Debit Credit

(b) Assume the same facts as part (a), except that the warrants had a fair value of $20. Prepare the entry to record the issuance of the bonds and warrants.

Description/Account Debit Credit

Reference no: EM13138104

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