Anteater Company issued 200 bonds, each with a face amount of $1,000,with detachable stock warrants at 102. Each warrant entitled its holder toacquire two shares of $100 par common stock for $125 per share. Throughdiscussion with investment bankers, it is determined that the bonds wouldsell for 98 without the warrants. The market value of each warrant is $45.Instructions:A. Record the issuance of the bonds.B. Record the entry necessary assuming half of the warrants are exercised.C. Record the entry necessary assuming the remaining warrants after theexercise in B. above expire before being exercised.

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sell for 98 without the warrants. The market value of each warrant is $45. Instructions: A. Record the issuance of the bonds. B. Record the entry necessary assuming half of the warrants are exercised. C. Record the entry necessary assuming the remaining warrants after the exercise in B. above expire before being exercised.

sell for 98 without the warrants. The market value of each warrant is $45. Instructions: A. Record the issuance of the bonds. B. Record the entry necessary assuming half of the warrants are exercised. C. Record the entry necessary assuming the remaining warrants after the exercise in B. above expire before being exercised.

Financial Reporting, Financial Statement Analysis and Valuation

8th Edition

ISBN:9781285190907

Author:James M. Wahlen, Stephen P. Baginski, Mark Bradshaw

Publisher:James M. Wahlen, Stephen P. Baginski, Mark Bradshaw

Chapter7: Financial Activities

Section: Chapter Questions

Problem 11QE

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