Prepare in general journal format the entry to record the issuance of the bonds. (List all debit entries before credit entries. Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter O for the amounts.) Date September 1, 2025 Account Titles and Explanation Cash Bonds Payable Premium on Bonds Payable Interest Expense Paid-in Capital-Stock Warrants Debit 5,086,800 Credit 4,800,000 128,400 38,400 120,000

FINANCIAL ACCOUNTING
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ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
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On September 1, 2025, Tamarisk Company sold at 104 (plus accrued interest) 4,800 of its 10%, 10-year, $1,000 face value,
nonconvertible bonds with detachable stock warrants. Each bond carried two detachable warrants. Each warrant was for one share of
common stock at a specified option price of $18 per share. Shortly after issuance, the warrants were quoted on the market for $4 each.
No fair value can be determined for the Tamarisk Company bonds. Interest is payable on December 1 and June 1.
Prepare in general journal format the entry to record the issuance of the bonds. (List all debit entries before credit entries. Credit account
titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles
and enter O for the amounts.)
Date
September 1,
2025
Account Titles and Explanation
Cash
Bonds Payable
Premium on Bonds Payable
Interest Expense
Paid-in Capital-Stock Warrants
Debit
5,086,800
MI
Credit
4,800,000
128,400
38,400
120,000
Transcribed Image Text:On September 1, 2025, Tamarisk Company sold at 104 (plus accrued interest) 4,800 of its 10%, 10-year, $1,000 face value, nonconvertible bonds with detachable stock warrants. Each bond carried two detachable warrants. Each warrant was for one share of common stock at a specified option price of $18 per share. Shortly after issuance, the warrants were quoted on the market for $4 each. No fair value can be determined for the Tamarisk Company bonds. Interest is payable on December 1 and June 1. Prepare in general journal format the entry to record the issuance of the bonds. (List all debit entries before credit entries. Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter O for the amounts.) Date September 1, 2025 Account Titles and Explanation Cash Bonds Payable Premium on Bonds Payable Interest Expense Paid-in Capital-Stock Warrants Debit 5,086,800 MI Credit 4,800,000 128,400 38,400 120,000
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