On August 1, 2020, Anderson Industries issued $500,000 of 30-year, 10% nonconvertible bonds for $520,000....
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On August 1, 2020, Anderson Industries issued $500,000 of 30-year, 10% nonconvertible bonds for $520,000. Each $1,000 bond was issued with 10 detachable stock warrants, each of which entitled the bondholder to purchase, for $25, one share of Anderson Communications no par common stock. On August 1, 2020, the market value of the common stock was $35 per share and the market value of each warrant was $7. How much is the credit to the Equity Stock Warrants account in the journal entry for the issuance of the bonds on August 1, 2020?
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