Solution-Prepare the journal entry to record the bond issue

Prepare the journal entry to record the bond issue

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Reference no: EM132876613

Problem - On January 1, 2016, Cooper Corporation issued $800,000 of 12.5% bonds due January 1, 2023, at 102. The bonds pay interest semi-annually on June 30 and December 31. Each $1,000 bond carried 10 warrants which allowed the acquired to exchange 1 share of $10 par common stock for 550. Some-time after the bonds were issued the bonds were quoted at 98 ex rights and each individual warrant was quoted at 55. Subsequently, on April 30, 2017, 2,000 rights were exercised.

Required -

1. Prepare the journal entry to record the bond issue.

2. Prepare the journal entries on April 30, 2017, to record the exchange of the warrants for common shares.

Reference no: EM132876613

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Prepare the journal entry to record the bond issue

Reference no: EM132876613

Reference no: EM132876613

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