On May 1, 2020, Monty Company issued 1,900 $1,000 bonds at 102

Accounting Dec 11, 2021

On May 1, 2020, Monty Company issued 1,900 $1,000 bonds at 102. Each

bond was issued with one detachable stock warrant. Shortly after issuance, the bonds were selling at 97, but the fair value of the warrants cannot be determined.

(a) Prepare the entry to record the issuance of the bonds and warrants.

(b) Assume the same facts as part (a), except that the warrants had a fair value of $37. Prepare the entry to record the issuance of the bonds and warrants.