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3 years ago

If $1,000,000 of 8% bonds are issued at 102 3/4, the amount of cash received from the sale is ______________.

Business

1 answer:

Jobisdone [24]3 years ago

4 0

Answer:

The amount of cash received from the sale is $1,027,500

Explanation:

In this scenario we first have to know the number of bonds issued and then multiply it by the bond price which is given to us in the question.

The bonds have a total face value of 1,000,000 and one bond is issued at 102.75 which means that the face value of a single bond is 100.

Now in order to find the number of bonds issued we will divide the total face value by the face value of a single bond.

1,000,000/100=10,000.

10,000 bonds were issued at $ 102.75 now in order to calculate the total cash received we will multiply the number of bonds with the issue price.

10,000*102.75=1,027,500

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1) Debit changes to current assets are added or subtracted from net income _____?

V125BC [204]

Answer

(1)Subtracted (2) Subtracted (3) Subtracted (4) yes, it will affect the statement of cash flow as the amortization of bonds payable (premium) to be added back to the Net income because, it is a non cash expense.

Explanation:

Solution

Given that:

(1) The changes of debit to current assets are added or subtracted from net income:

Answer: They are subtracted from net income

(2) The changes of debit to current liabilities are added or subtracted from net income.

Answer: they are subtracted from net income

(3) Redemption gains of bonds are added or subtracted from net income.

Answer: Gains on redemption of bonds are subtracted from net income

(4), Yes, it will affect the statement of cash flow As the amortization of bonds payable (premium) to be added back to the Net income, because it is a non cash expense.

Thus the cash flow statement is adjusted.

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2 years ago

On January 1, 2018, Titania Inc. granted stock options to officers and key employees for the purchase of 20,000 shares of the co

qwelly [4]

Answer:

Explanation:

Date General Journal Debit Credit

Jan 1 2018 No Entry when granting

Dec 31 2018 Compensation Expense ($350,000/2 Years) $175,000

Paid in Capital Stock Options $175,000

(for Year 2018 - compensation expense)

Apr 1 2019 Paid in Capital Stock Options $ 17,500

Compensation Expense $ 17,500

(To record termination of stock options)

$350,000*2,000/20,000*1/2

Dec 31 2019 Compensation Expense ($350,000/2 Years) $157,500

Paid in Capital Stock Options $157,500

(for Year 2019 - compensation expense)

$350,000*18,000/20,000*1/2

Mar 31 2020 Cash (12,000*$25) $300,000

Paid in Capital Stock Options ($350,000*12,000/20,000) $210,000

Common Stock (12,000*$10) $120,000

Paid in capital, in excess of par-Common $390,000

(To record exercise of stock options)

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2 years ago

Special Plc has an issued share capital at 1 January 2019 of 1,000,000 ordinary shares of 20p each and 50,000 convertible prefer

coldgirl [10]

Answer:

A. £4.15

B.£4

Explanation:

A. Calculation for the diluted EPS for 2019

Using this formula

2019 Diluted EPS =(Earnings after tax for the year ended-Preferred Dividends)/Total Diluted Shares Outstanding

Let plug in the formula

2019 Diluted EPS=[£5,000,000-(£2.50 per share*50,000)/£1,000,000+ (£250,000*500/£1,000)+(50,000*£1)]

2019 Diluted EPS=[£5,000,000-(£2.50 per share*50,000)/£1,000,000+ (£250,000*0.5)+(50,000*£1)]

2019 Diluted EPS=[(£5,000,000-£125,000)/(£1,000,000+£125,000+£50,000)]

2019 Diluted EPS=£4,875,000/£1,175,000

2019 Diluted EPS=£4.15

Therefore 2019 Diluted EPS (Earning per share) will be £4.15

B. Calculation for the diluted EPS assuming that the convertible preference shares were receiving a dividend of £6 per share instead of £2.50.

Diluted EPS=[£5,000,000-(£6 per share*50,000)/£1,000,000+ (£250,000*500/£1,000)+(50,000*£1)]

Diluted EPS=[£5,000,000-(£6 per share*50,000)/£1,000,000+ (£250,000*0.5)+(50,000*£1)]

Diluted EPS=[(£5,000,000-£300,000)/(£1,000,000+£125,000+£50,000)]

Diluted EPS=£4,700,000/£1,175,000

Diluted EPS=£4

Therefore the Diluted EPS (Earning per share) will be £4

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2 years ago

Which points on the production possibilities curve show a level of production that would be achievable only through further grow

GarryVolchara [31]

Answer:

Most likely d and b

Explanation:

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