Business, 06.06.2020 15:58 PlsHelpMeh3401
On May 1, 2020, Buffalo Company issued 1,400 $1,000 bonds at 102. Each bond was issued with one detachable stock warrant. Shortly after issuance, the bonds were selling at 97, but the fair value of the warrants cannot be determined. Instructions:
a. Prepare the entry to record the issuance of the bonds and warrants.
b. Assume the same facts as part (a), except that the warrants had a fair value of $30. Prepare the entry to record the issuance of the bonds and warrants.
Answers: 2
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On May 1, 2020, Buffalo Company issued 1,400 $1,000 bonds at 102. Each bond was issued with one deta...
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