On April 7, 2010, Kegin Corporation sold a $2,000,000, twenty-year, 8 percent bond issue for $2,120,000
January 7th, 2018
On April 7, 2010, Kegin Corporation sold a $2,000,000, twenty-year, 8 percent bond issue for $2,120,000. Each $1,000 bond has two detachable warrants, each of which permits the purchase of one share of the corporation’s common stock for $30. The stock has a par value of $25 per share. Immediately after the sale of the bonds, the corporation’s securities had the following market values:8% bond without warrants $1,008Warrants 21Common stock 28What accounts should Kegin credit to record the sale of the bonds?
