Crane Corporation issued 2200 1000 bonds at 102 Each bond wa

Crane Corporation issued 2,200 $1,000 bonds at 102. Each bond was issued with one detachable stock warrant. After issuance, the bonds were selling separately at 98. The market price of the warrants without the bonds cannot be determined Use the incremental method to record the issuance of the bonds and warrants. (Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select \"No Entry for the account titles and enter O for the amounts.) Account Titles and Explanation Debit Credit

Solution

Account Titles and Explanation Debit Credit Cash $        2,244,000 =2200*1000*1.02 Discount on Bonds Payable $              44,000 =2%*2200*1000 Bonds Payable $        2,200,000 =2200*1000 Paid-in Capital - Stock Warrants $              88,000 =40*2200 Account Titles and Explanation Debit Credit Bonds Payable $        2,300,000 =2300*1000 Discount on Bonds Payable $              36,400 Common Stock $        1,150,000 =50*10*2300 Paid in capital in excess of par $        1,113,600 Diff