Headland Corporation issued 4,000, five year, 3% bonds at 103 on January 1, 2023. Interest is paid annually. Each $1,000 bond carried one detachable warrant allowing the holder to purchase 100 common shares in Headland at $10 per share, the price at which Headland shares were trading on the day of the sale of the bonds. Similar straight bonds trading on the open market paid 6%. On June 30. 2023,800 of the bond holders exercised the options to buy the shares. Prepare the journal entries to record these events. (Round present value factor calculations to 5 decimal places, eg. 1.25124 and the final answer to 0 decimal places eg. 58,971. Credit account titles are automatically indented when the amount is entered. Do not indent manually

Headland Corporation issued 4,000, five year, 3% bonds at 103 on January 1, 2023. Interest is paid annually. Each $1,000 bond carried one detachable warrant allowing the holder to purchase 100 common shares in Headland at $10 per share, the price at which Headland shares were trading on the day of the sale of the bonds. Similar straight bonds trading on the open market paid 6%. On June 30. 2023,800 of the bond holders exercised the options to buy the shares. Prepare the journal entries to record these events. (Round present value factor calculations to 5 decimal places, eg. 1.25124 and the final answer to 0 decimal places eg. 58,971. Credit account titles are automatically indented when the amount is entered. Do not indent manually

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

Chapter14: Financing Liabilities: Bonds And Long-term Notes Payable

Section: Chapter Questions

Problem 9P

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Similar questions

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