Please solve the question on paper and upload a screen shot or something because i have to write it down on paper.
On August 1, 2019, Schumpeter Conglomerates sold 0,000,000 20-year bonds with a coupon rate of
4% paid semi-annually. The market rate for a security of similar risk and maturity is 5%. Schumpeter
Conglomerates hired Ivanov’s Finance Shack to issue the securities at a cost of 1.75% of the selling price
of the security. Attached to each $125,000 bond are six detachable warrants allowing for the purchase of
50 shares of no-par common stock for $5 per share. Each warrant is estimated to have a market value of
$27. Record journal entries for the issuance of the bond, the first two interest payments, and any required
adjusting entries for the fiscal year ending December 31, 2019.
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