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Doss [256]
3 years ago
14

Eisler Corporation issued 2,000 $1,000 bonds at 101. Each bond was issued with one detachable stock warrant. After issuance, the

bonds were selling in the market at 98, and the warrants had a market price of $40. Use the proportional method to record the issuance of the bonds and warrants. (Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts. Round intermediate calculations to 5 decimal places, e.g. 1.24687 and final answers to 0 decimal places, e.g. 5,125.)
Business
1 answer:
Zolol [24]3 years ago
4 0

Answer:

In the books of Eisler Corporation :

Cash ( 2,000 x 1,000 x 101 %) A/c   Dr.  2,020,000

Discount on Bonds Payable A/c     Dr.   $59,216

To Bonds Payable                                                           2,000,000

To Paid-in Capital : Stock Warrants                                 79,216

Workings:

Bond issue proceeds proportionately allocated to bonds:

=2,020,000\times\frac{980}{980+40}

= 1,940,784.31

Discount on bonds payable = $ 2,000,000 - $1,940,784  

                                              = $59,216

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Explain 10 reasons why a joint stock company is preferable to a one man's business<br>​
mart [117]

Answer:

Advantages of a Joint Stock Company

One of the biggest drawing factors of a joint stock company is the limited liability of its members. their liability is only limited up to the unpaid amount on their shares. Since their personal wealth is safe, they are encouraged to invest in joint stock companies

The shares of a company are transferable. Also, in the case of a listed public company they can also be sold in the market and be converted to cash. This ease of ownership is an added benefit.

Perpetual succession is another advantage of a joint stock company. The death/retirement/insanity/etc does affect the life of a company. The only liquidation under the Companies Act will shut down a company.

A company hires a board of directors to run all the activities. Very proficient, talented people are elected to the board and this results in effective and efficient management. Also, a company usually has large resources and this allows them to hire the best talent and professionals.

Disadvantages of a Joint Stock Company

One disadvantage of a joint stock company is the complex and lengthy procedure for its formation. This can take up to several weeks and is a costly affair as well.

According to the Companies Act, 2013 all public companies have to provide their financial records and other related documents to the registrar. These documents are then public documents, which any member of the public can access. This leads to a complete lack of secrecy for the company.

And even during its day to day functioning a company has to follow a numerous number of laws, regulations, notifications, etc. It not only takes up time but also reduces the freedom of a company

A company has many stakeholders like the shareholders, the promoters, the board of directors, the employees. the debenture holders etc. All these stakeholders look out for their benefit and it often leads to a conflict of

Explanation:

6 0
3 years ago
Fred and george have been in partnership for many years. the partners, who share profits and losses on a 60:40 basis, respective
Doss [256]
I'm not gonna tell u the answer but u have to set 60:40 as a ratio to set it as a ratio u put 60/40 and then simplify to simplify those two number u have to divide by ten and find the relationship of those two number after y simplify and get ur number u scale up or down so after All those u have a fraction and then do the steps all over to $10,000
6 0
3 years ago
What is the present value of a four-year annuity of $100 per year that makes its first payment 2 years from today if the discoun
navik [9.2K]

Answer:

= $356.85

Explanation:

Here's the complete question :

What is the present value of a four-year annuity of $100 per year that makes its first payment 2 years from today if the discount rate is 9%

Present value is the sum of discounted cash flows.

Present value can be calculated using a financial calculator

Cash flow each year in year 0 and 1 = 0

Cash flow each year from year 2 to 6 = $100

I = 9%

PV = $356.85

To find the PV using a financial calacutor:

1. Input the cash flow values by pressing the CF button. After inputting the value, press enter and the arrow facing a downward direction.

2. After inputting all the cash flows, press the NPV button, input the value for I, press enter and the arrow facing a downward direction.

3. Press compute

I hope my answer helps you

3 0
3 years ago
What global marketing opportunities and challenges would you face if the simulation were based on a real-world international sit
Dominik [7]

Answer:

The answer is stated below:

Explanation:

The challenges which one would face and these are:

1. Hiring especially and retaining the top talent.

2. Secure the budget.

3. Economic fluctuations.

4. Trained professionals.

5. Evaluation of ROI (Return on Investment) on activities of the marketing.

When the company or firm faces the limitations grounded on the real world situations then all of the mentioned above will be a challenge for the company. The firm or the company will have to meet the fluctuation which is linked with the economic conditions as well as the currency.

When the assumptions are build as a simulation then the company or the firm will not be in a position to take the risk. The assumption could cause the firm to travel safely in the economy, in order to take or face the challenges the firm should ready to face the risks and have the plans in respect to tariffs, currency and other barriers.

If the firm wants to play safe then should be open to all the fluctuations and prepared to meet the ups as well as downs in the business.

So, assumptions should be made in such a way that they safeguard or protect the company but should not be such that it will limit the company growth.

5 0
2 years ago
In March, Stinson Company completes Jobs 10 and 11.
mario62 [17]

Answer:

The journal entries are as follows:

(i) On March 31,

Finished Goods A/c Dr. $56,400

           To Work in Process        $56,400

(To record the completion of the two jobs)

(ii) On March 31,

Cash A/c Dr. $38,000

  To sales                    $38,000

(To record the sale Job 10)

(iii) On March 31,

Cost of goods sold A/c Dr. $21,400

            To finished goods                 $21,400

(To record the cost of the job sold)

8 0
2 years ago
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