On September 1, 2020, Windsor Company sold at 104 (plus accrued
interest) 3,840 of its 8%, 10-year, $1,000 face value,
nonconvertible bonds with detachable stock warrants. Each bond
carried two detachable warrants. Each warrant was for one share of
common stock at a specified option price of $13 per share. Shortly
after issuance, the warrants were quoted on the market for $2 each.
No fair value can be determined for the Windsor Company bonds.
Interest is payable on December 1 and June 1.
Prepare in general journal format the entry to record the issuance
of the bonds. (Credit account titles are automatically
indented when amount is entered. Do not indent manually. If no
entry is required, select "No Entry" for the account titles and
enter 0 for the amounts.)
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