Check my work mode : This shows what is correct or incorrect for the work you ha

Question

Check my work mode : This shows what is correct or incorrect for the work you have completed so fer. It does On August 1, 2018, L 2038. Each $1000 bond was issued with 25 detachable stock warrants, each of which entitled the bondholder to purchase, for $40, one share of Limbaugh Communications no par common stock. Interstate Containers purchased 20% of the bond issue. On A 2018, the market value of the common stock was $38 per share and the market value of each warrant was $10 st In February 2029, when Uimbaugh's common stock had a market price of $52 per share and the unamortized discount balance was $t 1. Prepare the journal entries on August 1, 2018, to record (a) the issuance of the bonds by Limbaugh and (b) the investment by million, Interstate Containers exercised the warrants t held Required Interstate 2 Prepare the journal entries for both Limbaugh and Interstate in February 2029, to record the exercise of the warrants Answer is complete but not entirely correct. Complete this question by entering your answers in the tabs below. equired 1Required 2 Prepare the journal entries on August 1, 2018, to record (a) the issuance of the bonds by Limbaugh and (b) the investment by Interstate. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field Enter your answers in nillions and round to 2 dedienal places (i.e., 5,500,000 should be entered as 5.50)). Cash Diascount on bonds payable 33.600.000 03 6.400,000 01 Bonds payable 3 2.000 000 03 8000,000 0083 1,600.000 Dincount on bond investment Cash 720,000 00e acer F1 F3 2

Explanation / Answer

Amounts must be correct, what you did wrong is that you wrote it as 32,000,000 instead of 3.20 million. See the note in the red color in the question.

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