Answer:
The Journal entries are as follows:
(i) On April 6,
Cash A/c Dr. $5,000
To Sales $5,000
(To record the cash sales )
(ii) On April 6,
Cost of goods sold A/c Dr. $3,000
To merchandise inventory $3,000
(To record the cost of goods sold)
(iii) On April 12,
Sales return and Allowances A/c Dr. $630
To cash $630
(To record the sales return)
(iv) On April 12,
merchandise inventory A/c[(630 ÷ 5,000) × 3,000] Dr. $378
To cost of goods sold $378
(To record the cost of sales return and allowances
Answer:
When bonds are converted into common stock____.
a. the market price of the stock and the bonds is ignored when recording the conversion.
Explanation:
This is because the conversion price, which is the price at which the convertible bond is converted into the common stock of the entity, is usually set initially when the conversion ratio is first decided on. Therefore, the market prices of the stock and the bonds are not taken into account when the conversion recording is being done.
Answer:
6.383%
Explanation:
Calculation for the What is the yield to maturity
Using this formula
YTM=n√Face value/Bond price -1
Where,
n=one-year
Face value=10,000
Bond price=9,400
Let plug in the formula
YTM=1√10,000/9,400−1
YTM=1.06383-1
YTM=0.06383*100
YTM=6.383%
Therefore the yield to maturity will be 6.383%
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