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Sweetgrass Baskets Inc. has issued $1,000,000 in 15-year, 5% bonds. You are the controller at Sweetgrass...

Sweetgrass Baskets Inc. has issued $1,000,000 in 15-year, 5% bonds. You are the controller at Sweetgrass Baskets Inc. and have been asked to prepare the journal entry for the issuance of these bonds, given the following set of facts:

The bonds were issued at 103, and cash collected at issuance totaled $1,020,000

Each bond is accompanied with 10 detachable warrants.

The warrants are trading on the stock exchange for $2 per warrant.

*SHOW WORKING NOTES*

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ekkarill92 answered 1 year ago
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