Prepare all the necessary journal entries assuming the share warrants are fully exercised.
Prepare all the necessary journal entries assuming the share warrants are fully exercised.
Intermediate Accounting: Reporting And Analysis
3rd Edition
ISBN:9781337788281
Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach
Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach
Chapter13: Investments And Long-term Receivables
Section: Chapter Questions
Problem 1RE
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Question
On January 1, 2015, Case Company issued P5,000,000 of 12% nonconvertible bonds at 103
which are due on February 28, 2020. In addition, each P1,000 bond was issued with 30
detachable share warrants, each of which entitled the bondholder to purchase, for P50, one
ordinary share of Case Company, par value of 25.
On January 1, 2015, the quoted market value of each warrant was P4. The market
bond
Required:
Prepare all the necessary
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