Exhibit 14-8 Yoho Corp. issued $500,000 of its ten-year 6% bonds at 104. Each $1,000 bond carries ten warrants. Each warrant allows the holder to purchase one share of $10 par common stock for $50. Following the sale, relevant market values were:
-Refer to Exhibit 14-8. The entry to record the sale of the bonds would include a
A) debit to Discount on Bonds Payable for $10,000
B) credit to Bonds Payable for $490,000
C) debit to Cash for $560,000
D) credit to Common Stock Warrants for $65,000

Question

Exhibit 14-8 Yoho Corp. issued $500,000 of its ten-year 6% bonds at 104. Each $1,000 bond carries ten warrants. Each warrant allows the holder to purchase one share of $10 par common stock for $50. Following the sale, relevant market values were:  
-Refer to Exhibit 14-8. The entry to record the sale of the bonds would include a
A) debit to Discount on Bonds Payable for $10,000 
B) credit to Bonds Payable for $490,000 
C) debit to Cash for $560,000 
D) credit to Common Stock Warrants for $65,000

Quizplus · Accepted Answer

The Answer of Exhibit 14-8 Yoho Corp. issued $500,000 of its ten-year 6% bonds at 104. Each $1,000 bond carries ten warrants. Each warrant allows the holder to purchase one share of $10 par common stock for $50. Following the sale, relevant market values were:  
-Refer to Exhibit 14-8. The entry to record the sale of the bonds would include a
A) debit to Discount on Bonds Payable for $10,000 
B) credit to Bonds Payable for $490,000 
C) debit to Cash for $560,000 
D) credit to Common Stock Warrants for $65,000