On December 31, 2017, Stellar Company had $1,159,000 of short-term debt in the form of notes payable due February 2, 2018. On Ja
nuary 21, 2018, the company issued 25,500 shares of its common stock for $45 per share, receiving $1,147,500 proceeds after brokerage fees and other costs of issuance. On February 2, 2018, the proceeds from the stock sale, supplemented by an additional $11,500 cash, are used to liquidate the $1,159,000 debt. The December 31, 2017, balance sheet is issued on February 23, 2018.Show how the $1,159,000 of short-term debt should be presented on the December 31, 2017, balance sheet.
1 answer:
Answer:
Explanation:
Before showing how short term debt should be presented before doing this we have to classify the items in each head
Like - In current liabilities, notes payable is recorded at $11,500
And, in the long term liabilities, the proceed after brokerage fees for $1,147,500 should be recorded.
The total amount would remain the same i.e $1,159,000
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Answer:
price for selling 3000 share right is $25060.87
Explanation:
Given data:
Total Amount raised= $4,400,000
Spreading rate = 6%
Subscription price = $20 per share
Number of share owned by company = 500,000
Per share cost = $45
Totals share own in the company = 3000
subscription price after deducting spreading rate
Now, Right share
Right price is calculated as
Right price = ((Number of share held * market price) + (Right share *Right price))/( Number of share held + Right share)
plugging all value in above relation
Right share = $36.65
single right value = 45- 36.65 = $8.35
Price for 3000 share right = 8.35 *3000 = $25060.86