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On July 1,2017,Madrid Plastics Issued Bonds That Included 20 Stock

Question 128

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On July 1,2017,Madrid Plastics issued bonds that included 20 stock warrants for each bond.The warrants were appropriately valued at $4 each at the time the bonds were issued.Each warrant allows the warrant holder to purchase a share of $5 common stock for $30 per share.A holder of 500 warrants decided to exercise all warrants and purchased 500 shares of stock when the market price of the shares was $42.What is the proper journal entry for Madrid to record this transaction?


A) On July 1,2017,Madrid Plastics issued bonds that included 20 stock warrants for each bond.The warrants were appropriately valued at $4 each at the time the bonds were issued.Each warrant allows the warrant holder to purchase a share of $5 common stock for $30 per share.A holder of 500 warrants decided to exercise all warrants and purchased 500 shares of stock when the market price of the shares was $42.What is the proper journal entry for Madrid to record this transaction? A) B) C) D)
B) On July 1,2017,Madrid Plastics issued bonds that included 20 stock warrants for each bond.The warrants were appropriately valued at $4 each at the time the bonds were issued.Each warrant allows the warrant holder to purchase a share of $5 common stock for $30 per share.A holder of 500 warrants decided to exercise all warrants and purchased 500 shares of stock when the market price of the shares was $42.What is the proper journal entry for Madrid to record this transaction? A) B) C) D)
C) On July 1,2017,Madrid Plastics issued bonds that included 20 stock warrants for each bond.The warrants were appropriately valued at $4 each at the time the bonds were issued.Each warrant allows the warrant holder to purchase a share of $5 common stock for $30 per share.A holder of 500 warrants decided to exercise all warrants and purchased 500 shares of stock when the market price of the shares was $42.What is the proper journal entry for Madrid to record this transaction? A) B) C) D)
D) On July 1,2017,Madrid Plastics issued bonds that included 20 stock warrants for each bond.The warrants were appropriately valued at $4 each at the time the bonds were issued.Each warrant allows the warrant holder to purchase a share of $5 common stock for $30 per share.A holder of 500 warrants decided to exercise all warrants and purchased 500 shares of stock when the market price of the shares was $42.What is the proper journal entry for Madrid to record this transaction? A) B) C) D)

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