Question: 1. On June 1, 2016 Square corporation issued 100 $1000, 10%bonds at 102 . The bonds were sold with a detachable stock warrant permitting the holder to purchase on share of common stock ($1 par) for $15. On the date, the market value of common stock was $15 and the market value of the warrant was $4. There was available for the bonds.
Required: - Record the issuance of these bonds with deteachable stock warrants.
- On sept. 1, 2017, 100 bondholders exercised the stock warrent when the market value of Square Corp. is $20 per share. Record the excercise of the stock warrants on Square's books.