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Colt1911 [192]
3 years ago
14

Petrenko Corporation has outstanding 2,000 $1,000 bonds, each convertible into 50 shares of $10 par value common stock. The bond

s are converted on December 31, 2017, when the unamortized discount is $30,000 and the market price of the stock is $21 per share. Record the conversion using the book value approach. Eisler Corporation issued 2,000 $1,000 bonds at 101. Each bond was issued with one detachable stock warrant After issuance, the bonds were selling in the market at 98, and the warrants had a market price of $40. Use the proportional method to record the issuance of the bonds and warrants.
Business
1 answer:
Alenkasestr [34]3 years ago
6 0

<u>Solution:</u>

<u>The</u><u> </u><u>following journal entries will be passed:</u>

Accounts                                                                Debit  Credit

Bond Payable (2000 bonds x $1000)               $2,000,000  

Discounts on Bonds Payable                                            $30,000

Common Stock (50 shares x $10 x 2000 bonds)           $1,000,000

Paid -in Capital in Excess of Par--Common Stock            $970,000

(TO RECORD CONVERSION)

Cash ( 2000 * $1000 * 1.01)                                $2020000

Discount on bonds payable                                 $59216

Bonds payable (2000 * $1000)                                                     $ 2000000

Paid - in - Capital - Stock warrant                                                   $79216

(To record issuance of bonds with stock warrant)

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To make a decision resulting in good corporate citizenship, a business should evaluate the decision based on:
Sergio039 [100]

Answer:

All of them

Explanation:

When making decisions, a business should evaluate:

  • Legal implications of each decision : do our decisions comply with all applicable laws and regulation?
  • Public relations impact : how will the public feel about our decision?
  • Safety risks for consumers and employees: does it affect the safety and well being of our employees and customers?
  • Financial implications: does our decision benefit our business?
7 0
3 years ago
A decrease in the demand for eggs due to changes in consumer tastes, accompanied by a decrease in the supply of eggs as a result
Mariana [72]

Answer:

a decrease in the equilibrium quantity of eggs; the equilibrium price may increase or decrease

Explanation:

Here are the options

a decrease in the equilibrium quantity of eggs and no change in the equilibrium price.

a decrease in the equilibrium quantity of eggs; the equilibrium price may increase or decrease.

a decrease in the equilibrium price of eggs; the equilibrium quantity may increase or decrease.

a decrease in the equilibrium price of eggs and no change in the equilibrium quantity.

Only a change in the price of a good leads to a movement along the demand curve of that good. Also, only a change in the price of the good would lead to an increase or decrease in the quantity demanded of that good.

Other factors other than the change in the price of the good would lead to a shift of the demand curve. Some of those factors include :

1. a change in consumers' expectation

2. a change in the taste of consumers

3. a change in income

A change in price of a good leads to a movement along the supply curve and not a shift of the supply curve.

Other factors other than a change in the price of the good would lead to a shift of the supply curve. Such factors include :  

1. A change in the price of input  

2. A change in the number of suppliers  

3. Government regulations  

A decrease in the demand for eggs would lead to a leftward shift of the demand curve for eggs. Price and quantity would fall as a result.

a decrease in the supply of eggs would lead to a leftward shift of the supply curve for eggs. Price would increase and quantity would fall.

Taking these two effects together, there would be a fall in equilibrium quantity and equilibrium price can either rise or fall depending on if demand or supply has a greater effect.

7 0
3 years ago
assume that the price of a $1,000 zero-coupon bond with five years to maturity is $567 when the required rate of return is 12 pe
Gelneren [198K]

The price elasticity of the bond, based on the years to maturity and the required rate of return is -0.494

<h3>How to find the price elasticity of he bond?</h3><h3 />

First, find the new price of the bond:
= 1, 000 / ( 1 + 15%)⁵

= $497

The change in price:

= (497 - 567) / 567

= -12.3%

Then find the percentage change in the required rate of return:

= (15 - 12%) / 12

= 25%

The price elasticity of the bond is:

= -12.3% / 25%

= -0.494

Find out more on price elasticity at brainly.com/question/5078326

#SPJ1

3 0
1 year ago
5
sineoko [7]
If this is a true or false statement, then true. 
5 0
3 years ago
Nueva Company reported the following pretax data for its first year of operations. Net sales 7,400 Cost of goods available for s
Ludmilka [50]

Answer:

Net Income $574

Explanation:

Calculation of Nueva's net income if it elects FIFO will be :

Net sales$7,400

Less Cost of goods sold ($4,806)

($5,610 − $804)

Gross profit 2,594

Operating expenses (1,638)

Income before taxes 956

(2,594-1,638)

Income tax 382.4

(40%×956)

Net income $574

(956-382.4)

Therefore the Nueva's net income if it elects FIFO would be $574

8 0
3 years ago
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