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Pani-rosa [81]
3 years ago
12

Pearl Corporation issued 1,700 $1,000 bonds at 103. Each bond was issued with one detachable stock warrant. After issuance, the

bonds were selling separately at 98. The market price of the warrants without the bonds cannot be determined. Use the incremental method to record the issuance of the bonds and warrants.
ex. account title DR
Account title CR
Business
1 answer:
arlik [135]3 years ago
7 0

Answer:

Solution as seen below

Explanation:

Bond = 1,700 × $1,000 × 98%

= $1,666,000

Allocation :

Issue price $1,751,000

(1,700 × $1,000 × 103%)

Bonds ( $1,666,000 )

Warrants $85,000

($1,751,000 - $1,666,000)

Bond face value $1,700,000

(1,700 × $1,000)

Allocated FMV ($1,666,000)

Discounts $34,000

($1,700,000 - $1,666,000)

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A company issued common stock and preferred stock. Projected growth rate of the common stock is 5%. The current quarterly divide
mr_godi [17]

Answer:

8%

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Momentous Occasions is a photography business that shoots videos at college parties. The freshman class pays $1,000 in advance o
KatRina [158]

Answer:

a. The Date on which Revenue was earned is April 2.

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Explanation:

a.

To understand this let us create a Journal Entry for the transaction on March 3 first:

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To record cash earned from the services payable.

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Credit: Service Revenue $1,000

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Answer:

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