Please show all calculations. Thank you! Zoom in on pictures to become more clea

Question

Please show all calculations. Thank you! Zoom in on pictures to become more clear. Problem #2-Due Thursday, March 20, 2018 (note: this is a change to the date shown in the syllabus!' 29 30 Over the years, Windel Corporation has issued a number of bonds. The folowing questions on each of the bonds represent independent situations A. On April 1, 2014, Windel Corporation issued bonds with detachable warrants. Information related to these bonds is showm below 34 Face value of bonds Stated rate of interest Bonds issued at Each $1,000 bond was sold with Each warrant allowed the investor to purchase one share of common stock for The par value of the common stock is On April 1, 2014 the market values were: s 1,000,000 36 37 103 20 detachable warrants 38 48 Common stock Warrants 41 12 43 In February 2019, the proportion of warrants exercised was 25% Prepare the journal entry for the issuance of the bonds with the detachable warrants. a. b. Prepare the journal entry to record the exercise of the warrants. Required: B. Previously. Windel Corporation issued convertible bonds. Information related to the bonds is shown below s 80,000,000 Face value of bonds Stated rate of interest Fach $1,000 bond can be converted into The par value of the common stock is Unamortized balance at June 30, 2019 S Percentage ot shares converted into common stock on July 1, 2019 Market value of Common Stock on date of 52 8% interest is payable each June 30 and December 31. 40 shares of Common Stock 10 4,000,000 premium 56 57 s30

Explanation / Answer

As per policy, only one question is allowed to answer at a time, so answering Problem 2A) :

Problem 2 A) a) For the issuance of the bonds with the detachable warrants: Date Accounts Tiltes Debit $ Credit $ April 1 2014 Cash 1030000 Loss on issue of bonds 930000 Bonds payable 1000000 Detachable Warrants 960000 (being issue of bonds with warrants (1m*20*$48/1000=960000) b) For the recording of exercise of detachable warrants: Feb-19 Detachable Warrants(960000/4) 240000 Common Stock(5000*5) 25000 Paid in capital in excess of par 215000 (being exercise of 25% of warrants)

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