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notsponge [240]
3 years ago
8

If sixty $1,000 convertible bonds with a carrying value of $70,000 are converted into 9,000 shares of $5 par value common stock,

the journal entry to record the conversion is
Account Titles and Explanation Debit Credit

Bonds Payable (60 x $1000) 60,000
Premium on Bonds Payable (70,000 - 60,000) 10,000
Common Stock (9000 shares x 5) 45,000
Paid-in Capital in Excess of Par (70000 - 45000) 25,000

Please explain where does that bonds payable (60x 1000) comes from?
Business
1 answer:
Vinvika [58]3 years ago
6 0

Answer:

Explanation:

The journal entry is shown below:

Bonds payable A/c Dr $60,000

Premium on bonds payable A/c Dr $10,000

           To Common stock A/c $45,000

           To Paid in capital in excess of par A/c $25,000

(Being the conversion of bonds is recorded)

The computation is shown below:

For bonds payable

= sixty $1,000 convertible bonds

That means

= 60 × $1,000

= $60,000

For Premium on bonds payable:

= $70,000 - $60,000

= $10,000

For Common stock:

= 9,000 shares × $5

= $45,000

And, the remaining balance is credited to paid in capital in excess of par

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When an organization selects a single, primary target market and focuses all its energies on providing a product to fit that mar
sammy [17]

Answer:

Concentrated Targeting Strategy

Explanation:

Concentrated Targeting Strategy refers to a situation in which an organization focus its marketing efforts on only a specific segment of the market. That is, only one marketing mix is developed.

Concentrated Targeting Strategy allows the producer focus on the needs and wants of a particular segment of the consumers/ population. The producer directs all it's efforts to the satisfaction of a segment of the consumers.

Concentrated Targeting Strategy could be disadvantageous if the demand of the focused segment of consumers is low. Low demand will affect the financial position of an organization.

5 0
3 years ago
Bottle Top, Inc. recently announced they will pay their first annual dividend next year in the amount of $0.75 a share. The divi
Korolek [52]

Answer:

$12.50

Explanation:

Data provided in the question

Annual dividend next year = $0.75

Growth rate = 4%

Required rate of return = 10%

So by considering the above information, the price of the share is

= Next year dividend ÷ (Required rate of return - growth rate)

= $0.75 ÷ (10% - 4%)

= ($0.75) ÷ (6%)

= $12.50

Hence we considered all the information which is given in the question

4 0
3 years ago
Crane Company sells 50000 units for $10 a unit. Fixed costs are $350000 and net income is $100000. What should be reported as va
koban [17]

Answer:

Variable expenses = $50,000

Explanation:

Given:

Sales price = 50,000 x $10 = $500,000

Fixed costs = $350,000

Net income = $100,000

Find:

Variable expenses

Computation:

Variable expenses = Sales price - Fixed costs - Net income

Variable expenses = $500,000 - $350,000 - $100,000

Variable expenses = $50,000

5 0
3 years ago
Marigold Corp. took a physical inventory on December 31 and determined that goods costing $155,000 were on hand. Not included in
patriot [66]

Answer: $‭204,800‬

Explanation:

When a good is shipped FOB shipping point, it means that the buyer assumes responsibility for the goods as soon as the goods reach the place they will be shipped from. The purchase from Pelzer should therefore be included in inventory because it has already been shipped.

A good shipped FOB Destination means that the buyer only assumes responsibility after the goods have been delivered to them. As the sale to Alvarez was still in transit, it is still the responsibility of Marigold and should be included in inventory.

Inventory is therefore:

= 155,000 + 28,000 + 21,800

= $‭204,800‬

3 0
2 years ago
Cafe x bought 20,000 cups for $1,400 when they opened for business last month. At the end of the month they had 8,000 cups left.
JulsSmile [24]

<u>Calculation of the cost of goods sold (cogs) for the month;</u>


It is given that Cafe x bought 20,000 cups for $1,400 when they opened for business last month. At the end of the month, they had 8,000 cups left.  It means the Cups sold are (20,000-8000) = 12,000 cups

And the Cost of 12,000 cups sold shall be $1400*12000/20000 = $840


Hence the cost of goods sold (cogs) for the month is <u>$840.</u>




5 0
3 years ago
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