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question on april 1 2015 windel corporation issued bonds with detachable warrants in 4293379


On April 1, 2015, Windel Corporation issued bonds with detachable warrants. Information related to these bonds is shown below:










Face value of bonds







Stated rate of interest







Bonds issued at







Each $1,000 bond was sold with


detachable warrants



Each warrant allowed the investor to purchase one share of common stock for






The par value of the common stock is






On April 1, 2015 the market values were:







Common stock





















In February 2020, when Windel's common stock had a market price of $30 per share, one-third of the warrants were exercised.










a. Prepare the journal entry for the issuance of the bonds with the detachable warrants.



b. Prepare the journal entry to record the exercise of the warrants.





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