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Home Q & A Board Other Fields Homework Help Business Accounting
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anlore anlore
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5 years ago
On January 2, 2016, Weston, Inc. issued 5,000 bonds at $1,060 each. Each bond contains 20 detachable stock warrants, each of which gives the owner the right to purchase one share of Weston $5 par value common stock at $40. The current selling price of common stock is $30 per share. Weston bonds without stock warrants are currently selling for $1,025 and it has additional warrants on the market selling for $20.
   
Required:
1.  Prepare the journal entry to record the sale of the bonds using the proportional method.
2.  Prepare the journal entry to record the exercise of all warrants on October 8, 2019, when the market price of the stock was $50.
Textbook 
Intermediate Accounting

Intermediate Accounting


Edition: 1st
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JoslynJoslyn
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anlore Author
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5 years ago
Correct Slight Smile TY
dianeflunder
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Yesterday
Helped a lot
lierac00
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2 hours ago
Thank you, thank you, thank you!
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