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  3. hoffman corporation issued $85 million of 9%, 10-y

Hoffman Corporation issued $85 million of 9%, 10-year bonds at 104. Each of the 85,000...

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Accounting

Hoffman Corporation issued $85 million of 9%, 10-year bonds at 104. Each of the 85,000 bonds was issued with 15 detachable stock warrants, each of which entitled the bondholder to purchase, for $22, one share of $1 par common stock. At the time of sale, the market value of the common stock was $27 per share and the market value of each warrant was $4.

Prepare the journal entry to record the issuance of the bonds.

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