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mash [69]
3 years ago
7

Sheffield Corporation has outstanding 1,800 $1,000 bonds, each convertible into 40 shares of $10 par value common stock. The bon

ds are converted on December 31, 2020, 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.
Business
1 answer:
alekssr [168]3 years ago
5 0

Answer and Explanation:

The Journal entry is shown below:-

Bonds payable Dr,            $1,800,000

(1,800 × $1,000)

    To Discount on bonds payable        $30,000

    To Common stock                              $720,000

(1,800 × 40 × $10)

     To Paid-in-capital in excess of par   $1,050,000

(Being conversion of bond into common stock is recorded)

Therefore for recording the conversion using the book value approach we simply debited the bonds payable and credited the discount on bonds payable, common stock and paid-in-capital in excess of par.

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According to the video, what are some common responsibilities of industrial production managers? check all that apply.
dmitriy555 [2]

Answer:

staff, equipment, schedules, quality control, and inventory

Explanation:

EDGE2022

5 0
2 years ago
The Xu Corporation uses a periodic inventory system. The company has a beginning inventory of 1,950 units at $22 each on January
kramer

Answer:

$21,770

Explanation:

The computation of cost of goods sold is shown below:-

= (1,950 × $22) + (2,200 × $21) + (1,050 × $23)

= $42,900 + $46,200 + $24,150

= $113,250

Total number of units for sale = 1,950 + 2,200 + 1,050

= $5,200

Weighted average cost per unit = Cost of units available for sale ÷ Number of units available for sale

= $113,250 ÷ $5,200

= $21.77

Cost of goods sold = Sold units × Weighted average cost per unit

= 1,000 × $21.77

= $21,770

3 0
3 years ago
Which of the following terms best characterizes cost-benefit anaylsis
frutty [35]
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7 0
3 years ago
Read 2 more answers
Alpha Company uses its sales invoices for posting perpetual inventory records. Inadequate internal control over the invoicing fu
dmitriy555 [2]

Answer:

Among the possible answers to this question it is possible to find

a. Understatement of revenues, receivables and inventory.

b. Overstatement of revenues, and receivables and an understatement of inventory.

c. Understatement of revenues, and receivables and an overstatement of inventory.

d. Overstatement of revenues, receivables and inventory.

The correct answer is:

c. Understatement of revenues, and receivables and an overstatement of inventory.

Explanation:

If the invoice of the sale is not generated this would not communicate the message to the accounting department about the movement, reason why the income could not be registered which would result in the generation of receivables to the customers. Besides, the inventory would be affected since the merchandising would not be discount from the existing products inside the company, which will result in an overstatement of inventory.

8 0
3 years ago
If the currency of your country is depreciating, this should __________ exports and __________ imports.
uysha [10]

Answer:

Stimulate; discourage.

Explanation:

Depreciation can be defined as a process in which the monetary or financial value with respect to an asset decrease or falls over time as a result of wear and tear.

This ultimately implies that, depreciation is a process which typically involves the general fall in the value of an asset such as currency, plant equipment or machinery etc over a specific period of time.

Basically, in a floating exchange rate system, a fall or decline in the value of a currency with respect to another currency is generally referred to as currency depreciation. Currency depreciation can stimulate or improve a country's export value, if the depreciation occurs gradually and in an orderly manner because it will make the exported goods cheaper to the foreign customers. Thus, this would encourage willing investors to invest in the economy of that particular country.

Hence, if the currency of your country is depreciating, this should stimulate exports and discourage imports because currency depreciation increases a country's trade deficit (balance of trade) by enhancing the competitiveness of locally manufactured (domestic) goods in foreign markets (countries) and consequently, making foreign goods to become more expensive due to its lesser competitiveness in the domestic market.

3 0
3 years ago
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