Question

Convertible bonds All of the choices are correct. Are separated into their components based on relative...

Convertible bonds

All of the choices are correct.

Are separated into their components based on relative fair values.

Allow a company to issue debt financing at cheaper rates.

Are separated into the bond component and the expense component.

According to IFRS, a company makes only a memorandum entry when

All of the choices are correct.

Companies issue rights to existing shareholders.

Companies include warrants to make a security more attractive.

Companies give warrants to executives and employees as a form of compensation.

0 0
Add a comment Improve this question Transcribed image text
Answer #1

1. Answer: Option 3 (allow a company to issue debt financing at cheaper rates)

A convertible debt is separated into the bond component and equity component. When reporting a convertible debt, the components are not reported at their fair values. The fair value of the instrument as a whole is bifurcated into liability component and remainder for equity component.

2. Answer: Option 2 (companies issue rights to existing shareholders)

Companies make a memorandum entry only when rights to purchase newly issued shares are issued. A memorandum entry is a short message entered into the general journal and also entered into a general ledger account. It is not a complete journal entry.

Add a comment
Know the answer?
Add Answer to:
Convertible bonds All of the choices are correct. Are separated into their components based on relative...
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
  • 19. 19. Share issue costs refer to the costs of obtaining the legal, promotional, and accounting...

    19. 19. Share issue costs refer to the costs of obtaining the legal, promotional, and accounting services necessary to effect the sale of shares. The costs reduce the net cash proceeds from selling the shares and thus paid-in capital—excess of par, and are: Multiple Choice Not recorded separately. Recorded as an asset. Amortized over time. Recorded as a liability. 20 Corporations are formed in accordance with: Multiple Choice The Model Business Corporation Act. The laws of individual states. Federal statutes....

  • EXAn Fat the bej and a $5 mm urke ing rate I. Select the best answer...

    EXAn Fat the bej and a $5 mm urke ing rate I. Select the best answer (60 points) The conversion of bonds is most commonly recorded by the 1 gslain the mit entries eries: C fair v a. incremental method b. proportional method. c. market value method. d. book value method If a company offers additional considerations to convertible bondholders In order to encourage 2. conversion, it is called a(an): of end mont nsid mobi a. forced conversion. b. sweetener...

  • case study apple iPhone. There are risks and rewards for all in a global economy. The...

    case study apple iPhone. There are risks and rewards for all in a global economy. The globalization of human capital results in a range of winners and losers around the world: companies and their stockholders, consumers, contractors, firms up and down the supply chain, employed people, and unemployed people, as well as their economies. In February 2011, President Obama asked Apple's Steve Jobs why Apple could not bring back all the jobs it used to provide in the United States....

  • ARE MY ANSWERS CORRECT? 25 questions 1. what an A/R aging analysis is, its purpose, and...

    ARE MY ANSWERS CORRECT? 25 questions 1. what an A/R aging analysis is, its purpose, and how it is created. Used to estimate amount needed in Allowance for Bad Debts Account (a contra account) A/R Days Outstanding 0-30           31-60               61-90               Over 90 Under each term list all A/Rs that are not paid by date Use historical experience to estimate the percentage of A/R for each date period to determine allowance for Bad Debts What the three major cost components are...

  • CASE STUDY Apple's iPhones-Not "Made in America" and most Apple has become one of the best-...

    CASE STUDY Apple's iPhones-Not "Made in America" and most Apple has become one of the best- h, al operation in part ahrough The globalization of human c There are risks and rewards for all in a global economy in a range of contractors, firms winners and losers around the world companies and their stockholders, res · s up and down the supply chain, employed people, and unemployed people tie In February 2011, President Obama asked Apple's Steve Jobs(nowdee why Apple...

  • 5. Show the journal to record the declaration of cash dividends. The amount declared is $2,915...

    5. Show the journal to record the declaration of cash dividends. The amount declared is $2,915 on the statement of equity. The amount actually paid on the cash flow statement is $2,905. Show journal entry here: Date Accounts Debit Credit Note-we will ignore the $1mil reduction in Retained Earnings on the Treasury Stock/other line. We aren't given enough information to re-create this journal entry. 7. We can move to the Treasury Stock Column next. We see that treasury stock was...

  • 8. Move on to the Accumulated Other Comprehensive Income/ (Loss) column. The total change is $407...

    8. Move on to the Accumulated Other Comprehensive Income/ (Loss) column. The total change is $407 mil Comprehensive Income. To find the break-down of the $407 mil go to the Consolidated Statement of Comprehensive Income. Remember there are four items that are charged to Other I'll do the foreign currency translation adjustment Date Accounts Debit Credit Other comprehensive loss-foreign currency Payables-(accounts payable) 523 523 You do the marketable securities adjustment. (4 points) Date Accounts Debit Credit I'll take the derivatives...

  • Refer to the following financial statements and answer the following questions hints:- 13. cash provided (used)...

    Refer to the following financial statements and answer the following questions hints:- 13. cash provided (used) by operating activities, investing activities, and financing activities. 14. cash-based net income. 15. estimate of uncollectible accounts receivable. 16. calculate and interpret accounts receivable ratio (most recent and prior period). hints:- 2:12 PM Wed Apr 15 39%). A 51.04cdn.com PART II NIKE, Inc. Consolidated Statements of Income in mWors, except per share data) Revenues Cost of sales Gross profit Demand creation expense Operating overhead...

  • Required: 1. What is the amount of Apple’s accounts receivable as of September 30, 2017? 2....

    Required: 1. What is the amount of Apple’s accounts receivable as of September 30, 2017? 2. Compute Apple’s accounts receivable turnover as of September 30, 2017. 3. How long does it take, on average, for the company to collect receivables for fiscal year ended September 30, 2017? 4. Apple’s most liquid assets include (a) cash and cash equivalents, (b) short-term marketable securities, (c) accounts receivable, and (d) inventory. Compute the percentage that these liquid assets (in total) make up of...

  • 4. Perform a SWOT analysis for Fitbit. Based on your assessment of these, what are some strategic options for Fitbit go...

    4. Perform a SWOT analysis for Fitbit. Based on your assessment of these, what are some strategic options for Fitbit going forward? 5. Analyze the company’s financial performance. Do trends suggest that Fitbit’s strategy is working? 6.What recommendations would you make to Fitbit management to address the most important strategic issues facing the company? Fitbit, Inc., in 2017: Can Revive Its Strategy and It Reverse Mounting Losses? connect ROCHELLE R. BRUNSON Baylor University MARLENE M. REED Baylor University in the...

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