On September 21, 2010, The Lopez Co. issues $1,000,000 of bonds having a coupon rate of 6%. To help the sale, detachable stock warrants are issued at the rate of ten warrants for each $1,000 bond sold.

On September 21, 2010, The Lopez Co. issues $1,000,000 of bonds having a coupon rate of 6%. To help the sale, detachable stock warrants are issued at the rate of ten warrants for each $1,000 bond sold. The fair market value of the warrants is $63,000. The bonds with the warrants sold at 101 plus accrued interest. Interest is payable on November 1st and May 1st. (Assume a 360 day year, i.e., 30-day months.)

Prepare the 9/21/10 entry for this transaction.

“Get 15% discount on your first 3 orders with us”
Use the following coupon
FIRST15

Order Now