Question
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
On March 1, 2021, E Corp. issued $1,000,000 of 10% nonconvertible bonds at 103, due on February 28, 2031. Each $1,000 bond wa
0 0
Add a comment Improve this question Transcribed image text
Answer #1

Ist Part Proceed from issue of bond = $300,000 *105% = $315,000 Fair value of warrant issued = 300,000/1000 *25 *$2 = $15,000

I hope i was helpful!

Please give a thumbs up!

Thank You!

Add a comment
Know the answer?
Add Answer to:
1 question 2 parts On April 1, 2021, Austere Corporation issued $300,000 of 10% bonds at...
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Not the answer you're looking for? Ask your own homework help question. Our experts will answer your question WITHIN MINUTES for Free.
Similar Homework Help Questions
  • 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.

  • 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 March 1, 2021, E Corp. issued $1,000,000 of 10% nonconvertible bonds at 106, due on...

    On March 1, 2021, E Corp. issued $1,000,000 of 10% nonconvertible bonds at 106, due on February 28, 2031. Each $1,000 bond was issued with 37 detachable stock warrants, each of which entitled the holder to purchase, for $60, one share of Evan's $30 par common stock. On March 1, 2021, the market price of each warrant was $4. By what amount should the bond issue proceeds increase shareholders' equity? 1 o o o $148,000. o $11,000.

  • 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, 2018, Austere Corporation issued $390,000 of 11% bonds at 107. Each $1,000 bond...

    On April 1, 2018, Austere Corporation issued $390,000 of 11% 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 $18. On that date, the market value of the common stock was $14 per share and the market value of each warrant was $4. Austere should record what amount of the proceeds from the bond issue as an increase in liabilities? Multiple Choice Ο Ο...

  • 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 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...

  • 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 August 1, 2021, Limbaugh Communications issued $42 million of 10% nonconvertible bonds at 105. The...

    On August 1, 2021, Limbaugh Communications issued $42 million of 10% nonconvertible bonds at 105. The bonds are due on July 31, 2041. Each $1,000 bond was issued with 20 detachable stock warrants, each of which entitled the bondholder to purchase, for $50, one share of Limbaugh Communications' no par common stock. Interstate Containers purchased 20% of the bond issue. On August 1, 2021, the market value of the common stock was $45 per share and the market value of...

  • On August 1, 2021, Limbaugh Communications issued $40 million of 8% nonconvertible bonds at 102. The...

    On August 1, 2021, Limbaugh Communications issued $40 million of 8% nonconvertible bonds at 102. The bonds are due on July 31, 2041. Each $1,000 bond was issued with 20 detachable stock warrants, each of which entitled the bondholder to purchase, for $60, one share of Limbaugh Communications’ no par common stock. Interstate Containers purchased 20% of the bond issue. On August 1, 2021, the market value of the common stock was $58 per share and the market value of...

ADVERTISEMENT
Free Homework Help App
Download From Google Play
Scan Your Homework
to Get Instant Free Answers
Need Online Homework Help?
Ask a Question
Get Answers For Free
Most questions answered within 3 hours.
ADVERTISEMENT
ADVERTISEMENT
ADVERTISEMENT