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Gomez company issues 8200000 of bonds with a coupon rate of

Problem

Gomez Company issues $8,200,000 of bonds with a coupon rate of 8%. To help the sale, detachable stock warrants are issued at the rate of ten warrants for each $1,000 bond sold. It is estimated that the value of the bonds without the warrants is $8,099,000 and the value of the warrants is $513,000. The bonds with the warrants sold at 101. Present the entry required to record the bond transactions.

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Accounting Basics: Gomez company issues 8200000 of bonds with a coupon rate of

Reference No:- TGS02592490

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Solution Preview :

Prepared by a verified Expert

Accounting Basics: Gomez company issues 8200000 of bonds with a coupon rate of

Reference No:- TGS02592490

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