On August 1, 2018, Limbaugh Communications issued $22 million of 11% nonconvertible bonds at 105. The...

4.5 Ratings (634 Votes)

	Date	Account Titles and Explanation	Debit	Credit

1. a	Aug-01	Cash ($22Million*105%)	23100000
		Discount on Bond Payable	3300000
		Bond Payable (Face Value)		22000000
		Equity Stock Warrant ($22Million/$1,00040Warrants $10)		4400000
		(To record issuance of bond)

1. b	Aug-01	Investment in Stock warrants ($4.4Million*20%)	880000
		Investment in Bods ($22Million*20%)	4400000
		Discount on Bonds (Plug in)		660000
		Cash ($22Million105%20%)		4620000
		(To record invetment in bonds and warrants)

2		Limbaugh - Issuer

	Feb-29	Cash (22,000 Bonds40 Warrants$50)*20%	8800000
		Equity Stock Warrants ($4.4Million*20%)	880000
		Common Stock (Plug in)		9680000
		(To record warrant exercise)

		Interstate-Investor

	Feb-29	Investment in Common Stock	9680000
		Investment in Stock warrants ($4.4Million*20%)		880000
		Cash (22,000 Bonds40 Warrants$50)*20%		8800000
		(To record warrant exercise)

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