Question 8 Or July 1, 2014, Roberts Corporation issued $3,100,000 of 9% bonds pa

Question

Question 8 Or July 1, 2014, Roberts Corporation issued $3,100,000 of 9% bonds payable it 20 years. The bonds include detachable warrants giving the bondholder the right to purchase for $30 one share of $1 par value common stock a: any time during the next 10 years. The bonds were sold for $3,100,000. The value of the warrants at the time of issuance was $105,000. Prepare the journal entry to record this transaction. (If no entry is required, select No entry for the account titles and enter 0 for the amounts. Credit account titles are automatically indented when amount is entered. Do not indent manually.)

Explanation / Answer

Date

Account Titles & Explanation

Dr.

Cr.

July 1, 2014

Cash Account

3,10,000

9% Bond Payable Account

3,10,000

(9% Bond sold for $3,10,000)

Date

Account Titles & Explanation

Dr.

Cr.

July 1, 2014

Cash Account

3,10,000

9% Bond Payable Account

3,10,000

(9% Bond sold for $3,10,000)

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