Homework Answers
| Debit | Credit | ||
| Cash | 71.4 | =70*1.02 | |
| Discount on bonds payable | 4.9 | ||
| Bonds payable | 70 | ||
| Equity—stock warrants | 6.3 | =70000*15*6 | |
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10 Brief Exercise 14-13 Bonds with detachable warrants [L014-5 r$30, one share of $1 par c...
Problem 11 Irish, Inc. issues 1,000 shares of $100 par, 10% preferred stock with detachable warrants....
Problem 11 Irish, Inc. issues 1,000 shares of $100 par, 10% preferred stock with detachable warrants. The package of one share of stock and one warrant sells for $110. Each warrant enables the holder to purchase five shares of no-par common stock at $40 per share. Immediately following the issuance of the stock, the stock warrants are selling are selling at $12 per warrant. The market value of the preferred stock without the warrants is $108 per share. Prepare the...
Problem 11 Irish, Inc. issues 1,000 shares of $100 par, 10% preferred stock with detachable warrants....
Problem 11 Irish, Inc. issues 1,000 shares of $100 par, 10% preferred stock with detachable warrants. The package of one share of stock and one warrant sells for $110. Each warrant enables the holder to purchase five shares of no-par common stock at $40 per share. Immediately following the issuance of the stock, the stock warrants are selling are selling at $12 per warrant. The market value of the preferred stock without the warrants is $108 per share. Prepare the...
E16-8 (L02) (Issuance of Bonds with Detachable Warrants) On September 1, 2017, Sands Company sold at...
E16-8 (L02) (Issuance of Bonds with Detachable Warrants) On September 1, 2017, Sands Company sold at 104 (plus accrued interest) 4,000 of its 9%, 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 $15 per share. Shortly after issuance, the warrants were quoted on the market for $3 each. No fair value can be determined for the Sands...
On April 1, 2018, Windel Corporation issued bonds with detachable warrants. Information related to these bonds...
On April 1, 2018, Windel Corporation issued bonds with detachable warrants. Information related to these bonds is shown below: Face value of bonds $325,000 Stated rate of interest 8% Bonds issued at 106% Each $1,000 bond was sold with 20 detachable warrants Each warrant allowed the investor to purchase one share of common stock for $16 The par value of the common stock is $4.00 On April 1, 2018 the market values were: Common stock $12 Warrants $7 In February...
Issuance of Bonds with Detachable Warrants) On September 1, 2014, Universal Coat Company sold at 104...
Issuance of Bonds with Detachable Warrants) On September 1, 2014, Universal Coat Company sold at 104 (plus accrued interest) 3,000 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 $15 per share. Shortly after issuance, the warrants were quoted on the market for $3 each. No market value can be determined for the Universal Coat...
Dilutive Securities and EPS Worksheets Part 1: Convertible Securities and Detachable Warrants I. JAMC Corp. issues...
Dilutive Securities and EPS Worksheets Part 1: Convertible Securities and Detachable Warrants I. JAMC Corp. issues $10,000,000 of bonds on May 24, 2018 at a discount of $600,000. Interest on the bonds is payable each October 24 and May 24 Each $1,000 bond (i.e., there were 10,000 issued) is convertible to 20 shares of common stock (par value $3). On October 24, 2022, 2,000 of the bonds are converted. At the time of the conversion, the total remaining unamortized discount...
Hoffman Corporation issued $60 million of 5%, 20-year bonds at 102. Each of the 60,000 bonds...
Hoffman Corporation issued $60 million of 5%, 20-year bonds at 102. Each of the 60,000 bonds was issued with 10 detachable stock warrants, each of which entitled the bondholder to purchase, for $20, one share of $1 par common stock. At the time of sale, the market value of the common stock was $25 per share and the market value of each warrant was $5. Prepare the journal entry to record the issuance of the bonds. (Enter your answers in...
offman Corporation issued $60 million of 5%, 20-year bonds at 102. Each of the 60,000 bonds...
offman Corporation issued $60 million of 5%, 20-year bonds at 102. Each of the 60,000 bonds was issued with 10 detachable stock warrants, each of which entitled the bondholder to purchase, for $20, one share of $1 par common stock. At the time of sale, the market value of the common stock was $25 per share and the market value of each warrant was $5. Prepare the journal entry to record the issuance of the bonds. (Enter your answers in...
Brief Exercise 14-12 Early extinguishment; effective interest [L014-5) remaining discount of $2 million. Journal entry worksheet...
Brief Exercise 14-12 Early extinguishment; effective interest [L014-5) remaining discount of $2 million. Journal entry worksheet of the bonds. KPrev 3 of 10 Next
Hoffman Corporation issued $95 million of 5%, 10-year bonds at 102. Each of the 95,000 bonds...
Hoffman Corporation issued $95 million of 5%, 10-year bonds at 102. Each of the 95,000 bonds was issued with 12 detachable stock warrants, each of which entitled the bondholder to purchase, for $28, one share of $1 par common stock. At the time of sale, the market value of the common stock was $33 per share and the market value of each warrant was $5. Prepare the journal entry to record the issuance of the bonds.
Problem 11 Irish, Inc. issues 1,000 shares of $100 par, 10% preferred stock with detachable warrants. The package of one share of stock and one warrant sells for $110. Each warrant enables the holder to purchase five shares of no-par common stock at $40 per share. Immediately following the issuance of the stock, the stock warrants are selling are selling at $12 per warrant. The market value of the preferred stock without the warrants is $108 per share. Prepare the...
Problem 11 Irish, Inc. issues 1,000 shares of $100 par, 10% preferred stock with detachable warrants. The package of one share of stock and one warrant sells for $110. Each warrant enables the holder to purchase five shares of no-par common stock at $40 per share. Immediately following the issuance of the stock, the stock warrants are selling are selling at $12 per warrant. The market value of the preferred stock without the warrants is $108 per share. Prepare the...
E16-8 (L02) (Issuance of Bonds with Detachable Warrants) On September 1, 2017, Sands Company sold at 104 (plus accrued interest) 4,000 of its 9%, 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 $15 per share. Shortly after issuance, the warrants were quoted on the market for $3 each. No fair value can be determined for the Sands...
Dilutive Securities and EPS Worksheets Part 1: Convertible Securities and Detachable Warrants I. JAMC Corp. issues $10,000,000 of bonds on May 24, 2018 at a discount of $600,000. Interest on the bonds is payable each October 24 and May 24 Each $1,000 bond (i.e., there were 10,000 issued) is convertible to 20 shares of common stock (par value $3). On October 24, 2022, 2,000 of the bonds are converted. At the time of the conversion, the total remaining unamortized discount...
Hoffman Corporation issued $60 million of 5%, 20-year bonds at 102. Each of the 60,000 bonds was issued with 10 detachable stock warrants, each of which entitled the bondholder to purchase, for $20, one share of $1 par common stock. At the time of sale, the market value of the common stock was $25 per share and the market value of each warrant was $5. Prepare the journal entry to record the issuance of the bonds. (Enter your answers in...
Brief Exercise 14-12 Early extinguishment; effective interest [L014-5) remaining discount of $2 million. Journal entry worksheet of the bonds. KPrev 3 of 10 Next
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