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makvit [3.9K]
3 years ago
14

Kelly Company issued $100,000 of 5%, 10-year bonds at 102 to a single investor. Each of the $1,000 bonds was convertible into 10

0 shares of no par common stock. The bonds were later converted when the remaining unamortized premium was $1,000. What is the amount that Kelly will credit to Common Stock when recording the conversion of the bonds?
Business
1 answer:
Angelina_Jolie [31]3 years ago
3 0

Answer:

The amount credited to common stock upon conversion of the bonds is $101000

Explanation:

When the bond was issued there would been a debit of $102000($100000*$102/$100) to cash account and credit of $102000 to liabilities split into $100000 bonds payable and $2000 bond premium.

However, on conversion to common stock with premium of $1000 outstanding in the books,the amount to be credited into common stock account is the issue value less outstanding premium.

The amount credited to common stock=$102000-$1000=$101000

This can be shown with entries below:

Dr Bond payable     $100000

Dr Bond premium    $1000

Cr Common stock                      $101000

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Discuss the merits and demerits of lepidopteran insects of crops production​
timurjin [86]

Explanation:

The Lepidopteran are species that have a wide range of adaptation in the insect world. They have an important part in the natural ecosystem where they are primary pollinators along with being considered as food in the food chain. These are for example the butterfly and moth categories.

Merits: Several Moth and butterfly species are considered to be beneficial where the economic interests are taken in regard. They are good pollinators and are major sources of silk production. In addition, they also pollinate the agricultural flowers.

Demerits: On the contrary, the caterpillars hatching from the eggs of butterflies can be considered as harmful towards large quantities of crops. They feed on these crops and also lay their eggs in there which in turn makes the crops harmful for human consumption.

8 0
3 years ago
A process that produces computer chips has a mean of .04 defective chip and a standard deviation of .003 chip. The allowable var
Anarel [89]

Answer:

a) 0.667

b) Yes

Explanation:

Data provided in the question:

Mean = 0.04

Standard Deviation = 0.003

Upper Specification Limit, USL = 0.046

Lower Specification Limit, LSL = 0.034

Now,

a) Capability Index is given as:

Cp = \frac{(USL-LSL)}{(6\sigma)}

or

Cp = \frac{(0.046-0.034)}{(6\times0.003)}

or

Cp = 0.667

Also,

Cpk = min(\frac{(USL-Mean)}{(3\sigma)},\frac{(Mean-LSL)}{(3\sigma)}

or

Cpk = min(\frac{(0.046-0.04)}{(3\times0.003)},\frac{(0.04-0.034)}{(3\times0.003)}

or

Cpk = min( 0.667 , 0.667 )= 0.667

Since,

Cp and Cpk are same in this case

therefore, it is ideal condition and process is capable

b) yes

6 0
3 years ago
Caracteristicas de un seguro público
mr Goodwill [35]
It’s Spanish lol lol lol
6 0
3 years ago
Harrods PLC has a market value of £136 million and 4 million shares outstanding. Selfridge Department Store has a market value o
Lisa [10]

Answer:

the stock price after the acquisition is $37.30

Explanation:

The computation of the stock price after the acquisition is given below:

= Worth of combined synergy ÷ (outstanding shares = harrods shares)

= £194 million ÷ (4 million + 1.2 million)

= £194 million ÷ 5.2 million shares

= $37.30 per share

hence, the stock price after the acquisition is $37.30

We simply applied the above formula so that the correct answer could come

5 0
3 years ago
Why did the artist, Pablo Picasso, become wealthy during his lifetime and the artist, Vincent van Gogh, remain poor his entire l
Harman [31]

<u>The reason that Pablo Picasso, become wealthy during his lifetime and the artist, Vincent van Gogh, remain poor his entire life:</u>

Pablo Picasso and Vincent van Gogh had more features in common. They had unanimously indistinct style of arts which had become immediately identifiable.

In spite of all that, Picasso died as a rich man owning an estate which is estimated at nearly 750 million dollar whereas Van Gogh died as a pauper.

Studies claim that the reason behind this would be that, Van Gogh remained to be a loner and socially inactive. He was depending on his brother to meet the social world and in contrast Picasso was a charismatic active member in various social clubs where her had multiple number of contacts and connections.

It's been said that Pablo Picasso was a hub who had a vast network of social lines and Vincent Van Gogh was a silent or solitary node.

But now, the paintings of both the greatest artists were well spoken and sell for more than 100,000,000 US Dollars.

5 0
3 years ago
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