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
Ksenya-84 [330]
3 years ago
10

On January 1, 2018, Gless Textiles issued $19 million of 8%, 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 Gless’s no par common stock. Bonds that are similar in all respects, except that they are nonconvertible, currently are selling at 99 (that is, 99% of face amount). Century Services purchased 15% of the issue as an investment.
Required:
1. Prepare the journal entries for the issuance of the bonds by Gless and the purchase of the bond investment by Century.
2. Prepare the journal entries for the June 30, 2022, interest payment by both Gless and Century assuming both use the straight-line method.
3. On July 1, 2023, when Gless’s common stock had a market price of $33 per share, Century converted the bonds it held. Prepare the journal entries by both Gless and Century for the conversion of the bonds (book value method).
Business
1 answer:
Leni [432]3 years ago
6 0
Prepare the journal entries for the issuance of the bonds by Gless and the purchase of the bond investment by Century.
You might be interested in
What would happen if one of the factors of production was missing
dmitriy555 [2]
Production would cease. i hope this helps you (;
7 0
3 years ago
Read 2 more answers
Puget Sound Divers is a company that provides diving services such as underwater ship repairs to clients in the Puget Sound area
notsponge [240]

Answer:

$50,094.8

Explanation:

Flexible Budget are budget prepared by taking the actual activity level achieved at standard cost/price. WHILE

q is taken as the actual level of activity which is 240 diving hours.

Puget Sound Divers

Flexible Budget For the Month Ended May 31

Revenue ($440.00 ×240) $105,600

Expenses:

Wages and salaries ($11,800 + $128.00×240) $42,520

Supplies ($3.00 ×240) $720

Equipment rental ($2,100 + $22.00 ×240) $7,380

Insurance ($4,000) $4,000

Miscellaneous ($530 + $1.48×240) $885.2

Total expense $55,505.2

Net operating income ($105,600- $55,505.2) $ 50,094.8

Net operating income =Revenue - Total expenses

3 0
3 years ago
Read 2 more answers
The following cost data pertain to the operations of Montgomery Department Stores, Inc., for the month of July. Corporate legal
deff fn [24]

Answer:

1.$134,000

2.$183,800

3.$124,050

Explanation:

1. Computation for the total amount of the costs that are direct costs of the Apparel Department

Apparel Department cost of sales - Evendale store $116,100

Apparel Department sales commission-Evendale store $7,950

Apparel Department manager's salary-Evendale store $9,950

Total direct costs for the Apparel Department

$134,000

2. Computation for the total amount of the costs that are direct costs of the Evendale Store

Apparel Department cost of sales - Evendale store $116,100

Store managers salary - Evendale store $18,300

Apparel Department sales commission-Evendale store $7,950

Store utilities - Evendale store $17,800

Janitorial costs - Evendale store $13,700

Apparel Department manager's salary-Evendale store $9,950

Total direct cost for the Evendale store $183,800

3. Computation for the total amount of the Apparel Department's direct costs that are variable costs with respect to total departmental sales

Apparel Department cost of sales - Evendale store $116,100

Apparel Department sales commission-Evendale store $7,950

Total variable cost-Apparel department $124,050

6 0
3 years ago
Some laws prohibit discrimination in employment. These laws promote which of the following primary functions of​ law? A. promoti
Nostrana [21]

Answer:

A. promoting social justice

Explanation:

Discrimination in any manner is prohibited at all the public places, and work places are part of such places covered.

There cannot be any discrimination on the grounds of religion, color, gender, or by any other categorization.

In this manner, every individual is treated equally, irrespective of the background he or she belongs too.

This provides a social justice to every individual. In this manner the social status, personality is not hindered.

7 0
3 years ago
Prepare the adjusting entry to record bad debts expense assuming uncollectibles are estimated to be (1) 3% of credit sales, (2)
Genrish500 [490]

Answer:

1.

Date                   Account Title                                             Debit          Credit

Dec. 31             Bad debt expense                                    $9,000

                        Allowance for doubtful accounts                                 $9,000

Working

= 3% * 300,000

= $9,000

2.

Date                   Account Title                                             Debit          Credit

Dec. 31             Bad debt expense                                    $12,000

                        Allowance for doubtful accounts                              $12,000

Working

= 1% * total debt

= 1% * (900,000 + 300,000)

= $12,000

3.

Date                   Account Title                                             Debit          Credit

Dec. 31             Bad debt expense                                    $12,500

                        Allowance for doubtful accounts                              $12,500

Working

= 6% * Accounts receivable

= 6% * 125,000

= $7,500

As the Allowance account is in debit, it means that bad debt exceeded the allowance so this balance needs to be added to properly cater for bad debts.

= 7,500 + 5,000

= $12,500

8 0
3 years ago
Other questions:
  • Charlotte (age 40) is a surviving spouse and provides all of the support of her four minor children, who live with her. Charlott
    13·1 answer
  • Assume that the firm is 40% financed by debt and 60% financed by equity. Its cost of debt is 8% and the cost of equity is 15%. T
    14·1 answer
  • A friend wants to borrow money from you. He stated that he will pay you $2500 every 6 months for 7 years with the first payments
    10·1 answer
  • A ____ illustrates the logical steps in a process but does not show data elements and associations.
    13·1 answer
  • The Petit Chef Co. has 7 percent coupon bonds on the market with 9 years left to maturity. The bonds make annual payments and ha
    7·1 answer
  • Your company has sent you an email telling you your department must increase the daily output goal of 120 widgets per hour, to 1
    12·1 answer
  • The loyalty program My Starbucks Rewards, which allows members to pay via their mobile device and earn points toward discounts a
    8·1 answer
  • Choose a contemporary leader (someone you know personally or a public figure). Consider how this individual leads. Discuss what
    11·1 answer
  • You just deposited $4,000 in cash into a checking account at the local bank. Assume that banks lend out all excess reserves and
    10·1 answer
  • Sometimes there is a backlash from employees regarding mandatory diversity training. One possible solution that has some researc
    7·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!