Face amount of the bonds exceeds the cash proceeds, Accounting Basics

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Face amount of the bonds exceeds the cash proceeds

Lang Co. issued bonds with detachable common stock warrants. Only the warrants had a known market value. The sum of the fair value of the warrants and the face amount of the bonds exceeds the cash proceeds. This excess is reported as:

A) Discount on Bonds Payable.

B) Premium on Bonds Payable.

C) Common Stock Subscribed.

D) Paid-in Capital in Excess of Par-Stock Warrants.

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Accounting Basics: Face amount of the bonds exceeds the cash proceeds

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Accounting Basics: Face amount of the bonds exceeds the cash proceeds

Reference No:- TGS056453

Have a Question? (oR Write a Review)

Recent Questions Asked Accounting Basics

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Accounting Basics: Face amount of the bonds exceeds the cash proceeds

Reference No:- TGS056453

Recent Questions Asked Accounting Basics

Q : Citizens not taking advantage of the available jobs

Q : Initial cash flow attributable to net working capital

Q : Compensation expense on books in the amount

Q : Problem on firm average collection period

Q : Face amount of the bonds exceeds the cash proceeds

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Q : Adjustment to the numerator earnings

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