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 of the bonds payable would be:
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On December 1, 2018, Waterway Industries issued at 102, 710 of
its 8%, $1,000 bonds. Attached...
On December 1, 2018, Jones Company issued at 105, nine hundred of its 10%, $1,000 bonds....
On December 1, 2018, Jones Company issued at 105, nine hundred of its 10%, $1,000 bonds. Attached to each bond was one detachable stock warrant entitling the holder to purchase 20 shares of Jones' common stock. On December 1, 2018, the market value of the bonds, without the stock warrants, was 90, and the market value of each stock purchase warrant was $10. The initial carrying value of the bonds payable would be: $945,000 $900,000 $1,000,000 $1,055,000 QUESTION 10 On...
During 2018, Bramble Corp. issued at 105 460, $1000 bonds due in ten years. One detachable...
During 2018, Bramble Corp. issued at 105 460, $1000 bonds due in ten years. One detachable stock warrant entitling the holder to purchase 15 shares of Bramble’s common stock was attached to each bond. At the date of issuance, the market value of the bonds, without the stock warrants, was quoted at 97. The market value of each detachable warrant was quoted at $40. What amount, if any, of the proceeds from the issuance should be accounted for as part...
QUESTION 11 On December 1, 2018, Jones Company issued at 105, nine hundred of its 10%,...
QUESTION 11 On December 1, 2018, Jones Company issued at 105, nine hundred of its 10%, $1,000 bonds. Attached to each bond was one detachable stock warrant entitling the holder to purchase 20 shares of Jones' common stock. On December 1, 2018, the market value of the bonds, without the stock warrants, was 90, and the market value of each stock purchase warrant was $10. The allocation of the value of the warrants would be: O $175,000 $189,000 $200,000 O...
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
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 3 Headland Corporation issued 1,900 $1,000 bonds at 102. Each bond was issued with one...
Problem 3 Headland Corporation issued 1,900 $1,000 bonds at 102. Each bond was issued with one detachable stock warrant. After issuance, the bonds were selling in the market at 99, and the warrants had a market price of $41. Use the proportional method to record the issuance of the bonds and warrants. Account Titles and Explanation Debit Credit
On August 1, 2018, Limbaugh Communications issued $35 million of 10% nonconvertible bonds at 102. The...
On August 1, 2018, Limbaugh Communications issued $35 million of 10% nonconvertible bonds at 102. The bonds are due on July 31, 2038. Each $1000 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 2018, the market value of the common stock was $58 per share and the market value of each...
(Show work and Calculations) On May 1, 2017, Larkspur Company issued 2,500 $1,000 bonds at 102....
(Show work and Calculations) On May 1, 2017, Larkspur Company issued 2,500 $1,000 bonds at 102. Each bond was issued with one detachable stock warrant. Shortly after issuance, the bonds were selling at 99, but the fair value of the warrants cannot be determined. (a) Prepare the entry to record the issuance of the bonds and warrants.
On May 1, 2017, Tamarisk Company issued 1,400 $1,000 bonds at 102. Each bond was issued with one detachable stock warran...
On May 1, 2017, Tamarisk Company issued 1,400 $1,000 bonds at 102. Each bond was issued with one detachable stock warrant. Shortly after issuance, the bonds were selling at 97, but the fair value of the warrants cannot be determined. (a) Prepare the entry to record the issuance of the bonds and warrants (b) Assume the same facts as part (a), except that the warrants had a fair value of $22. Prepare the entry to record the issuance of the...
On September 1, 2020, Waterway Company sold at 104 (plus accrued interest) 5,160 of its 9%,...
On September 1, 2020, Waterway Company sold at 104 (plus accrued interest) 5,160 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 $17 per share. Shortly after issuance, the warrants were quoted on the market for $2 each. No fair value can be determined for the Waterway Company bonds. Interest is payable on December 1...
On December 1, 2018, Jones Company issued at 105, nine hundred of its 10%, $1,000 bonds. Attached to each bond was one detachable stock warrant entitling the holder to purchase 20 shares of Jones' common stock. On December 1, 2018, the market value of the bonds, without the stock warrants, was 90, and the market value of each stock purchase warrant was $10. The initial carrying value of the bonds payable would be: $945,000 $900,000 $1,000,000 $1,055,000 QUESTION 10 On...
QUESTION 11 On December 1, 2018, Jones Company issued at 105, nine hundred of its 10%, $1,000 bonds. Attached to each bond was one detachable stock warrant entitling the holder to purchase 20 shares of Jones' common stock. On December 1, 2018, the market value of the bonds, without the stock warrants, was 90, and the market value of each stock purchase warrant was $10. The allocation of the value of the warrants would be: O $175,000 $189,000 $200,000 O...
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
Problem 3 Headland Corporation issued 1,900 $1,000 bonds at 102. Each bond was issued with one detachable stock warrant. After issuance, the bonds were selling in the market at 99, and the warrants had a market price of $41. Use the proportional method to record the issuance of the bonds and warrants. Account Titles and Explanation Debit Credit
On August 1, 2018, Limbaugh Communications issued $35 million of 10% nonconvertible bonds at 102. The bonds are due on July 31, 2038. Each $1000 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 2018, the market value of the common stock was $58 per share and the market value of each...
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