Answer:
cash 150,000 debit
discount on BP 47,500 debit
bonds payable 175,000 credit
warrants 22,500 credit
If the warrants were undetachabel they wouln't be able to be transfer in a secondary market thus, they will not be traded the accounting will only the 150,000 as bonds an dthe diffrence with the 175,000 as discount.
cash 150,000 debit
discount on BP 25,000 debit
bonds payables 175,000 credit
Explanation:
136,000 bonds 136,000/160,000 = 0.85
<u> 24,000 </u>warrant 24,000 /160,000 = 0.15
160,000
bonds 150,000 x 0.85 = 127,500
discount on bonds: 175,000 - 127,500 = 47,500
warrants 150,000 x 0.15 = 22,500
