Answer:
Cash 1.605.000 debit
Discount on Bonds payable 279,480 debit
Bonds payable 1,500,000 credit
Warrant on stock 384,480 credit
Explanation:
cash proceeds:
1,500,000 x 107/100 =
bond par value $1,000
warrants 45 x $7= $315
Total $1,315
Issued at 107 which is 1,000 x 107/100 = 1,070
bonds issued: 1,500,000 / 1,000 = 1,500
bonds payable: 1,070 x 1,000/1,315 = 813,68 x 1,500
discount on bonds: 1,000- 813,68 = 186,32 x 1,500
stock warrants 1.070x315/1,315=256,31 x 1,500
