$10,000 (Face Value)of Bonds Was Sold with a Total of 200

Multiple Choice

$10,000 (face value) of bonds was sold with a total of 200 detachable stock warrants attached.Each warrant conveys the right to purchase one common share at a specified price during a specified time period.The market immediately valued the warrants at $2 each.The issue sold for 102.The entry to record the bond issuance would include:

A) dr.bond premium $200
B) cr.bonds payable $10,200
C) dr.owners' equity account $400
D) dr.bond discount $200