KER CorpIssued 150,000 Rights Allowing the Holder to Acquire Common Shares

Essay

KER Corp.issued 150,000 rights allowing the holder to acquire common shares in 3 years' time at an acquisition price of $25 per share-the current market price.It takes 10 rights to acquire each share.The corporation received $30,000 for the rights.Assuming that 100,000 rights are exercised when the market price was $30, and the balance expire, prepare journal entries at: announcement date, issuance date, exercise date and expiration date.