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zhenek [66]
3 years ago
7

On January 1, 2021, Ozark Minerals issued $10 million of 9%, 10-year convertible bonds at 101. The bonds pay interest on June 30

and December 31. Each $1,000 bond is convertible into 40 shares of Ozarks no par common stock. Bonds that are similar in all respects, except that they are non convertible, currently are selling at 99. Upon issuance, Ozark should:
Business
1 answer:
joja [24]3 years ago
7 0

Answer:

Upon issuance, Ozark should "<em>Credit premium on bonds payable $100,000</em>"

Explanation:

Issue price of bond is ($10 million * $101) = $10,100,000

The face value of the bond                       = $10,000,000

The premium on bond = $10,100,000 - $10,000,000

The premium on bond = $100,000

                                   Journal entry

                                                    Debit                   Credit

Cash                                        $10,100,000

Premium on bonds payable                                $100,000

Bonds payable                                                     $10,000,000

Conclusion: Upon issuance, Ozark should "Credit premium on bonds payable $100,000"

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Answer:

a. leverage skills and products associated with a firm's core competencies from one country to another.

Explanation:

Company A can still meet the demands of the local markets and the competitive pressures it is facing by utilizing its core competences and deploring its products internationally.  A hybrid of localization and international strategies would be more appropriate.  This hybrid approach will enable the company "to realize the full benefits from economies of scale and learning effects, without losing on location economies," as desired in the case study.

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Pricing Strategy, Sales Variances Eastman, Inc., manufactures and sells three products: R, S, and T. In January, Eastman, Inc.,
deff fn [24]

Answer:

Check the explanation

Explanation:

Sales price variance = (Actual price - Budgeted price) * Actual units sold

Product R : ($25 - $26) * 123000 = $123000 unfavorable

Product S:($20 - $22) * 162700 = $325400 unfavorable

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Sales volume variance = (Actual units - Budgeted units) * Standard price

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Notes:

Actual units:

Product R = $3075000/ $25 = 123000

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6 0
3 years ago
How can you know if it's a good time to start your business?
Sonbull [250]

Answer:

The  good time to start your business is when When the economy is strong

<u>Explanation:</u>

Beginning a business is like starting a relationship; the appropriate time to establish a business is the point at which you have the opportunity to give your consideration about the business. The best time for beginning a company should not be affected by one’s age.

Individuals of all ages can start a business, and you might be astounded to realize that most entrepreneurs in the US are more seasoned; 51% of proprietors of independent companies have many years of operations and still successful.

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3 years ago
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On January 1 of the current year, Barton Corporation issued 11% bonds with a face value of $99,000. The bonds are sold for $94,0
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Answer:

$11,880

Explanation:

Calculation to determine The bond interest expense for the year ended December 31 is

First step

Semiannual interest=($99,000 * 0.11 * 6/12)

Semiannual interest= $5445

Second step

Semi-annual discount amortization

Semi-annual discount amortization=($99,000 - $94,050)/5*/12

Semi-annual discount amortization=($4950 / 5)*6/12

Semi-annual discount amortization= 495

Third step

Semiannual interest expense=(5445 + 495)

Semiannual interest expense = $5940

Now let determine the bond interest expense

Bond interest expense =($5940 * 2)

Bond interest expense = $11880

Therefore The bond interest expense for the year ended December 31 is $11,880

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