1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
Ostrovityanka [42]
3 years ago
15

MagTech Inc. requires funding to build a new factory and has decided to raise the additional capital by issuing $850,000 face va

lue of bonds with a coupon rate of 10%. In discussions with investment bankers, it was determined that to help the sale of the bonds, detachable stock warrants should be issued at the rate of 5 warrants for each $1,000 bond sold.
The value of the bonds without the warrants is considered to be $775,000, and the value of the warrants in the market is $75,000. The bonds sold in the market at issuance for $825,000.
Required:
(a) What entry should be made at the time of the issuance of the bonds and warrants?(b) If the warrants were nondetachable, would the entries be different? Discuss.

Business
1 answer:
aleksley [76]3 years ago
6 0

Attached screenshot has got your answer

You might be interested in
When John first starts his job, he rides the bus wherever he goes. However, after one year, John receives a promotion and a pay
vekshin1

Answer:

c. Inferior

Explanation:

Based on the information provided it can be said that this behavior would indicate that to John, a bus ride is an inferior good. This term by definition is a good whose demand decreases when consumer's income rises. Since John received an increased salary with his promotion, he is now able to afford to be able to drive instead of taking the bus. Therefore his demand for taking the bus has drastically decreased.

4 0
4 years ago
Who wants brainliest? <br><br> Name 3 ways it is okay to use copyrighted material and explain:
mart [117]

Answer:

1:  Criticism

2: Parody

3: News Reporting

4: Research, Scholarship

5: Teaching

Explanation:

Fair use allows limited use of copyrighted material without permission from the copyright holder for purposes such as criticism, parody, news reporting, research and scholarship, and teaching. There are four factors to consider when determining whether your use is a fair one.

5 0
3 years ago
Marshland Company is preparing the company's statement of cash flows for the fiscal year just ended. The following information i
Nikolay [14]

Answer: $44,000

Explanation:

The following information can be gotten from the question:

Cash dividends declared for the year = $40,000

Cash dividends payable at the beginning of the year = $17,000

Cash dividends payable at the end of the year = $13,000

Therefore, the amount of cash paid for dividends was:

= $40,000 + $17,000 - $13,000

= $57,000 - $13,000

= $44,000

4 0
3 years ago
Kansas Enterprises purchased equipment for $78,500 on January 1, 2021. The equipment is expected to have a five-year service lif
Tju [1.3M]

Answer: $14,350

Explanation:

When using the straight-line method, depreciation expense is uniform across the PPE's useful life.

Sometimes the company would like the PPE to have a residual value at the end of the useful life so we have to cater for this also.

The formula then for calculating Straight Line Depreciation goes thus,

Straight Line Depreciation Expense = Cost of PPE - Residual Value / Useful life.

= 78,500 - 6,750 / 5 years

= $14,350

$14,350 will be charged as Depreciation till the end of the 5th year at which point the Equipment will be worth $6,750.

6 0
3 years ago
Read 2 more answers
How can supply chain design and integration help john wolf reduce investment and space requirements while maintaining adequate s
Basile [38]

Some of the recommendations which can be given to the structuring of the supplier relationship of the dealership work of Wolf motors are mentioned below.

  • Formulation of a centralized supplier management system that will enable the organization to make consolidated buying decisions.
  • Maintenance of consistent quality control will enable good leveraging with the suppliers.
  • Before fixing up with any suppliers the organization can conduct research on the credibility of the supplier which can lead to the maintenance of the long-term relationship.
  • The automated inventory management system can be implemented like EDI

In commerce, the supply chain refers to the network of organizations, people, activities, information, and resources involved in providing products or services to consumers. Supply chain activities include the transformation of natural resources, raw materials, and components into finished products and their delivery to end customers. Sophisticated supply chain systems allow used products to re-enter the supply chain at any point where residual value can be recycled.

A typical supply chain begins with environmental, biological, and political regulation of natural resources, followed by human extraction of raw materials, includes multiple links of production, and Multiple levels of deposits that are getting smaller and smaller, moving more and more geographically distant locations. , and finally reaches the consumer.

Learn more about Supply Chain here: brainly.com/question/25160870

#SPJ4

4 0
2 years ago
Other questions:
  • 2. Trying to help your business and others with similar goals by trading information, including contacts and referrals, is calle
    10·1 answer
  • The current definition of the standard second of time is based on
    8·1 answer
  • Rahul needs a loan and is speaking to several lending agencies about the interest rates they would charge and the terms they off
    13·1 answer
  • Back Bay Company is a price−taker and uses target pricing. Refer to the following​ information:Production volume602,000units per
    12·1 answer
  • Both the agent and seller just signed the listing agreement. What must the licensee give to the seller now?
    5·1 answer
  • A consumer products company competes around the world primarily by customizing or differentiating its products to meet unique lo
    12·1 answer
  • An investor owns shares of Stock A and Stock B. The investor owns a total of 200 shares with a total value of $4000. How many sh
    7·2 answers
  • Accounts payable controls include all of the following, except: a. Mailing of monthly statements to vendors b. Use of chart of a
    7·1 answer
  • According to the circular flow model, how do households participate in the two markets?
    13·1 answer
  • I need help in this it’s personal finance
    7·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!