Check my work Hoffman Corporation issued 65 million of 5 20

Check my work Hoffman Corporation issued $65 million of 5%, 20 year bonds at 104, Each of the 65,000 bonds was issued with 15 detachable stock warrants, each of which entitled the bondholder to purchase, for $26, onè share of $1 par common stock. At the time of sale, the market value of the common stock was $31 per share and the market value of each warrant was $4 Prepare the journal entry to record the issuance of the bonds. (Enter your answers in millions rounded to 1 decimal place i.e., 5,500,000 should be entered as 5.5). If no entry is required for a transaction/event, select \"No journal entry equired\" in the first account field.) View transaction list

Solution

Journal Entry (Amont in millions) Date Particulars Dr. Amt Cr. Amt. 1 Cash                       67.6 Discount on Issue of Bonds                         1.3 $65 - $63.7    Bonds Payable                 65.0    Paid-In Capital - Stock Warrants                   3.9 (record the issue of Bonds with warrants) Value of Bonds + Warrants - $65,000,000 X 104%    67,600,000.00 Value of Warrants - 65,000 Bonds X 15 Nos X $4      3,900,000.00 Value of Bonds    63,700,000.00