- On April 7 2014 Kegin Corporation Sold A 4 000 000 Twenty Year 8 Percent Bond Issue For 4 240 000 Each 1 000 Bon 1 (67.81 KiB) Viewed 11 times
On April 7, 2014, Kegin Corporation sold a $4,000,000, twenty-year, 8 percent bond issue for $4,240,000. Each $1,000 bond has two detachable warrants, each of which permits the purchase of one share of the corporation's common stock for $30. The stock has a par value of $25 per share. Immediately after the sale of the bonds, the corporation's securities had the following market values: 8% bond without warrants $1,008 Warrants 21 Common stock 28 What accounts should Kegin credit to record the sale of the bonds? O Bonds Payable $4,000,000 Premium on Bonds Payable 240,000 $4,000,000 Premium on Bonds Payable 70,400 Paid-in Capital-Stock Warrants 169,600 Bonds Payable $4,000,000 Premium on Bonds Payable 155,200 Paid-in Capital-Stock Warrants 84,800 O Bonds Payable