Logo
Home Study Material Contact Search
AI Chat FREE
  1. business
  2. accounting
  3. metlock inc. has decided to raise additional capit

Metlock Inc. has decided to raise additional capital by issuing $176,000 face value of bonds...

60.1K

Verified Solution

Question

Accounting

image
Metlock Inc. has decided to raise additional capital by issuing $176,000 face value of bonds with a coupon rate of 11%. In discussions with investment bankers, it was determined that to help the sale of the bonds, detachable stock warrants should be issued at the rate of one warrant for each $100 bond sold. The value of the bonds without the warrants is considered to be $130,500, and the value of the warrants in the market is $14,500. The bonds sold in the market at issuance for $157,500. (a) What entry should be made at the time of the issuance of the bonds and warrants? (List debit entry before credit entry. Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts. Round intermediate colculations to 5 decimal ploces, eg. 1.24687 and final answers to 0 /scimal ploces, eg. 5,125 .)

Answer & Explanation Solved by verified expert
Get Answers to Unlimited Questions

Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!

Membership Benefits:
  • Unlimited Question Access with detailed Answers
  • Zin AI - 3 Million Words
  • 10 Dall-E 3 Images
  • 20 Plot Generations
  • Conversation with Dialogue Memory
  • No Ads, Ever!
  • Access to Our Best AI Platform: Flex AI - Your personal assistant for all your inquiries!
Become a Member

Other questions asked by students

Finance
1.2K views

TapsiCo is a manufacturer of soft drinks. TapsiCo owns a land in Georgia that can be...

Chemistry
1.2K views

What does the angle of twist mean in chemical compunds? Specifically BINOL. Where can I find references?

General Management
1.2K views

1.     What is true regarding integer programming/ A)    Optimal decision variables will be 0 or 1 B)    Excel solver does not provide sensitivity...

Biology
1.2K views

Blanching Cyanosis Sapphirosis Erythemia Question 33 2 points Listen The hypodermis acts as a shock...

Physics
1.2K views

10 kHz 100 pH m 500 u H leee 2 0 mH Figure 13 1...

Geometry
1.2K views

added a portable building The three steps that lead to the building rise 24 inches...

Algebra
1.2K views

4 As a teacher circulates the room she finds that 8 students answered a question...

Accounting
1.2K views

Declining-Balance Depreciation Methods) [LO 12-4] eEgg is considering the purchase of a new...

Accounting
1.2K views

Problem 9-2 The comparative statements of Cullumber Company are presented here. CULLUMBER COMPANY Income Statements...

Accounting
1.2K views

Find the EAR in each of the following cases. Note: Do not round intermediate calculations...

Accounting
1.2K views

Lubricants, Incorporated, produces a special kind of grease widely used by race car drivers. The...

Accounting
1.2K views

Required information [The following information applies to the questions displayed below] New...