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slamgirl [31]
3 years ago
15

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.
Business
1 answer:
ivann1987 [24]3 years ago
3 0

Answer:

The journal entry is as follows:

Cash 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

(To record the issuance of the bonds and warrants)

Workings:

Cash:

= 2,000 × $1,000 × 101%

= $2,020,000

Discount on bonds payable:

= 2,000,000 - 2,020,000 × (980 ÷ 1,020)

= $59,216

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Goods in process inventory account of a manufacturing company that uses an overhead rate based on the direct labor cost has a 4,
mafiozo [28]

Answer:

Overhead absorption rate

= Overhead absorbed/Actual labour cost x 100

= $4,400/$800  x 100

= 550% of direct labour cost

Explanation:

Since the overhead absorbed is $4,400, there is need to divide the overhead absorbed by actual direct labour cost multiplied by 100. This gives the overhead application rate.

7 0
3 years ago
How does government regulate natural monopolies?
Doss [256]
I believe the correct answer would be option A. The government regulate natural monopolies by ensuring and overseeing one supplier. A natural monopoly would happen when a largest manufacturer of a certain industry would have a very big gap as compared to other competitors. These industries are being regulated so as to minimize monopolization and to maintain the competitive equality between industries. Monopolies are mainly being governed by antitrust laws on a national level and on an international level. The ways that the government is regulating are establishing average cost pricing, price ceiling, Rate of return regulations and taxation laws.
5 0
3 years ago
Suppose the price elasticity of demand for oranges is 0.8. if a fall frost destroys one-third of the nation's orange crop, how w
Tresset [83]
<span>Total revenue from oranges will fall. Notice that the question assumes everything else unchanged. This means that even though the quantity has been reduced by the frost, the price is unchanged. Thus all producers are selling fewer oranges at the same price. It logically follows that total revenue will fall.</span>
3 0
3 years ago
Which of the following describes what the Fed would do to pursue an expansionary monetary​ policy? A. use discount policy to rai
koban [17]

Answer:

Option (B) is correct.

Explanation:

Open market operations is a monetary policy instrument that is used by the Federal reserve for controlling the money supply in an economy. If there is a need to decrease the money supply in an economy then fed sells the government securities to the public and on the other hand if there is a need to increase the money supply in an economy then fed purchases the government securities from the public.

So, here the expansionary policy is to purchases the treasury bills from the public.

7 0
3 years ago
Assume the Runnng Shoes division of the Shoes Corporation had the following results last year (in thousands). Management's targe
vivado [14]

Answer: 180%

Explanation:

Return on investment = (operating income/sales) x (sales/total assets)

=>  operating income / total assets

given Operating income=1,800,000

Total assets.1,000,000

Current liabilities.=810,000

Return on investment=1,800,000/1,000,00=1.8 X 100= 180%

4 0
3 years ago
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