Homework Answers
No.of bonds issued = $390,000 / $1000 = 390
Total no. of stock warrants = 390 * 40 = 15,600
Market Value of stock warrants = 15,600 * $4 = $62,400
Issue price of bonds = $390,000 * 1.07 = $417,300
Amount to be recorded as increase in liabilities = Issue price
of bonds - Value of stock warrants
= $417,300 - $62,400
= $354,900
Hence answer is b). $354,900
Add Answer to:
On April 1, 2018, Austere Corporation issued $390,000 of 11% bonds at 107. Each $1,000 bond...
On April 1, 2021, Austere Corporation issued $350,000 of 10% bonds at 107. Each $1,000 bond...
On April 1, 2021, Austere Corporation issued $350,000 of 10% bonds at 107. Each $1,000 bond was sold with 40 detachable stock warrants, each permitting the investor to purchase one share of common stock for $17. On that date, the market value of the common stock was $15 per share and the market value of each warrant was $2. Austere should record what amount of the proceeds from the bond issue as an increase in liabilities? Multiple Choice $271,000. $0....
On April 1.2021. Austere Corporation issued $360,000 of 14% bonds at 105. Each $1,000 bond was...
On April 1.2021. Austere Corporation issued $360,000 of 14% bonds at 105. Each $1,000 bond was sold with 30 detachable stock warrants, each permitting the investor to purchase one share of common stock for $16. On that date, the market value of the common stock was $13 per share and the market value of each warrant was $3. Austere should record what amount of the proceeds from the bond issue as an increase in labilities? Multiple Choice O 0 5470.900...
On April 1, 2021, Austere Corporation issued $300,000 of 10% bonds at 105. Each $1,000 bond...
On April 1, 2021, Austere Corporation issued $300,000 of 10% bonds at 105. Each $1,000 bond was sold with 25 detachable stock warrants, each permitting the investor to purchase one share of common stock for $17. On that date, the market value of the common stock was $15 per share and the market value of each warrant was $2. Austere should record what amount of the proceeds from the bond issue as an increase in liabilities? $0. $315,000. $300,000 $285,000.
1 question 2 parts On April 1, 2021, Austere Corporation issued $300,000 of 10% bonds at...
1 question 2 parts
On April 1, 2021, Austere Corporation issued $300,000 of 10% bonds at 105. Each $1,000 bond was sold with 25 detachable stock warrants, each permitting the investor to purchase one share of common stock for $17. On that date, the market value of the common stock was $15 per share and the market value of each warrant was $2. Austere should record what amount of the proceeds from the bond issue as an increase in liabilities?...
1-Auerbach Inc. issued 8% bonds on October 1, 2018. The bonds have a maturity date of...
1-Auerbach Inc. issued 8% bonds on October 1, 2018. The bonds have a maturity date of September 30, 2028 and a face value of $375 million. The bonds pay interest each March 31 and September 30, beginning March 31, 2019. The effective interest rate established by the market was 10%. Assuming that Auerbach issued the bonds for $328,266,900, what interest expense would it recognize in its 2018 income statement? 2-Auerbach Inc. issued 6% bonds on October 1, 2018. The bonds...
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...
on April 1, 2016. the happy city issued $ 300,000 of 10% bonds at 105. each...
on April 1, 2016. the happy city issued $ 300,000 of 10% bonds at 105. each 1000 bond was sold with 25 detachable stock warrants, each permitting the investor to purchase one share of common stock for $19. on that date the market value of each warrant was 4. on March 1, 2017, when the happy city's common stock had a market price of $20 per share, 40% of the warrants were exercised. the company's entry on march 1, 2017...
On April 1, Year 1, Ward Corp. issued $750,000 of 10% nonconvertible bonds at 102 that...
On April 1, Year 1, Ward Corp. issued $750,000 of 10% nonconvertible bonds at 102 that are due on March 31, Year 11. Each $1,000 bond was issued with 40 detachable stock warrants, each of which entitled the bondholder to purchase one share of Ward $10 par common stock for $25. On April 1, Year 1, the market value of Ward's common stock was $20 per share, and the market value of each warrant was $4. What amount of the...
On December 30, 2018, Cowgirlz, Inc. issued $500,000 8% ten-year bonds at 104. Each $1,000 bond...
On December 30, 2018, Cowgirlz, Inc. issued $500,000 8% ten-year bonds at 104. Each $1,000 bond carried one detachable warrant for one share of common stock at a price of $25 share. Immediately after issuance, the market v was $60,000. What amount, if any, should be allocated to the warrants at the date of issuance? a $60 000 alue of the bonds without the warrants was $540,000 and the market value of the warrants in total
On December 1, 2018, Waterway Industries issued at 102, 710 of its 8%, $1,000 bonds. Attached...
On December 1, 2018, Waterway Industries issued at 102, 710 of its 8%, $1,000 bonds. Attached to each bond was one detachable stock warrant entitling the holder to purchase 10 shares of Waterway's common stock. On December 1, 2018, the market value of the bonds, without the stock warrants, was 95, and the market value of each stock purchase warrant was $50. The amount of the proceeds from the issuance that should be accounted for as the initial carrying value...
On April 1.2021. Austere Corporation issued $360,000 of 14% bonds at 105. Each $1,000 bond was sold with 30 detachable stock warrants, each permitting the investor to purchase one share of common stock for $16. On that date, the market value of the common stock was $13 per share and the market value of each warrant was $3. Austere should record what amount of the proceeds from the bond issue as an increase in labilities? Multiple Choice O 0 5470.900...
On April 1, 2021, Austere Corporation issued $300,000 of 10% bonds at 105. Each $1,000 bond was sold with 25 detachable stock warrants, each permitting the investor to purchase one share of common stock for $17. On that date, the market value of the common stock was $15 per share and the market value of each warrant was $2. Austere should record what amount of the proceeds from the bond issue as an increase in liabilities? $0. $315,000. $300,000 $285,000.
1 question 2 parts
On April 1, 2021, Austere Corporation issued $300,000 of 10% bonds at 105. Each $1,000 bond was sold with 25 detachable stock warrants, each permitting the investor to purchase one share of common stock for $17. On that date, the market value of the common stock was $15 per share and the market value of each warrant was $2. Austere should record what amount of the proceeds from the bond issue as an increase in liabilities?...
On December 30, 2018, Cowgirlz, Inc. issued $500,000 8% ten-year bonds at 104. Each $1,000 bond carried one detachable warrant for one share of common stock at a price of $25 share. Immediately after issuance, the market v was $60,000. What amount, if any, should be allocated to the warrants at the date of issuance? a $60 000 alue of the bonds without the warrants was $540,000 and the market value of the warrants in total
Most questions answered within 3 hours.
-
This is a basic java program where you convert units using only
loops, control statements and...
asked 1 minute from now -
A sample survey at a supermarket showed that 204 of 300 shoppers
regularly use cents-off coupons....
asked 43 minutes ago -
1. Find the area under the standard normal curve that lies
outside the interval between z=...
asked 14 minutes ago -
In ________ mode, the interpreter reads the contents of a file
that contains Python statements and...
asked 30 minutes ago -
1.
The second-order rate constant for self-reaction of hydroxyl
radicals
2 OH → H2O + O...
asked 20 minutes ago -
What is the most important factor leading to improved resource
efficiency over the long run?
asked 16 minutes ago -
Defend the effectiveness of teamwork in an organization.
(Use no more than 30 words)
asked 18 minutes ago -
Promotional strategies can assist in moving a product through
the channel of distribution. (a) Briefly explain...
asked 18 minutes ago -
Discuss why new and improved security measures are not enough to
stop online crime, What is...
asked 24 minutes ago -
A person whose weight is 516 N is being pulled up vertically by
a rope from...
asked 37 minutes ago -
A long straight wire lies along the x axis carries a current of
15 amps in...
asked 34 minutes ago -
Suppose you work hard building your business and end up earning
zero economic profit for the...
asked 36 minutes ago