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Nataly [62]
3 years ago
14

Petrenko Corporation has outstanding 2,000 $1,000 bonds, each convertible into 50 shares of $10 par value common stock. The bond

s are converted on December 31, 2017, when the unamortized discount is $30,000 and the market price of the stock is $21 per share. Record the conversion using the book value approach.
Business
1 answer:
cricket20 [7]3 years ago
4 0

Explanation:

The Journal entry is given below :-

Bonds payable                                      $2,000,000

      To common stock                          $1,000,000

      To Discount on common stock     $30,000

      To Paid in capital                            $970,000

The calculation of bonds payable, common stock is below:-

For bonds payable            

= 2,000 × $1,000

= $2,000,000

For common stock

= 2,000 × 50 × $10

= $1,000,000

For paid in capital

= $2,000,000 - ($1,000,000 - $30,000)

= $970,000

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3 years ago
The cost allocation base​ ________. A. is a systematic way to link an indirect cost or group of indirect costs to cost objects B
ycow [4]

Answer:

The correct answer is letter "A": is a systematic way to link an indirect cost or group of indirect costs to cost objects.

Explanation:

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3 years ago
Ben and Jerry were shareholders of Water Ice Inc., an S corp. On Jan. 1, 1998, Ben owned 40 shares and Jerry owned 60 shares. Be
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Answer: $15,060

Explanation:

From the question, we are informed that Ben and Jerry were shareholders of Water Ice Inc., an S corp. On Jan. 1, 1998, Ben owned 40 shares and Jerry owned 60 shares.

We are further told that Ben sold his shares to Joe for $10,000 on March 31, 1998 and that the corp. reported a $50,000 loss at the end of 1998. The loss that will be allocated to Joe will be:

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= $50,000 × 0.4 × 0.75

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3 years ago
8/9 kids have cell phones. what percent didnt​
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3 years ago
E-Eyes has a new issue of preferred stock it calls 20/20 preferred. The stock will pay a $20 dividend per year, but the first di
tensa zangetsu [6.8K]

Answer:

$63.27

Explanation:

Calculation of how much should you pay on the stock today

First step

The Price of stock 19 years from now will be:.

20/0.075

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Second step

The Price of stock today will be :

The price of stock from 19 years from now which is:

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Therefore how much should you pay on the stock today will be $63.27

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3 years ago
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