BONDS ISSUED WITH DETACHABLE WARRANTS. Assume that Motorola, Inc., issues bonds with a face value of $10,000,000 for $9,200,000. The bonds have detachable warrants that may be traded in for shares of common stock. Assume that immediately after issue, bonds with warrants detached trade for $9,000,000; the warrants, for $ 400,000. Use the template below to show the financial statement effects at the date of issue.
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Assets
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Liabilities
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Shareholders' Equity
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AOCI
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Journal entry:
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