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Taya2010 [7]
3 years ago
7

On April 1, 2021, Austere Corporation issued $330,000 of 11% bonds at 106. Each $1,000 bond was sold with 30 detachable stock wa

rrants, each permitting the investor to purchase one share of common stock for $16. On that date, the market value of the common stock was $13 per share and the market value of each warrant was $3. Austere should record what amount of the proceeds from the bond issue as an increase in liabilities
Business
1 answer:
blondinia [14]3 years ago
7 0

Answer:

Austere Corporation

The amount of the proceeds from the bond that should be recorded as an increase in liabilities is:

= $320,100.

Explanation:

a) Data and Calculations:

The bonds issued = $330,000 at 106

Number of $1,000 bonds issued = 330 ($330,000/$1,000)

Market value of each warrant = $3

Proceeds from issue of bond = $330,000*106% = $349,800

Fair value of warrant issued = 330*30*$3 = $29,700

The bond issue liability = $349,800 - $29,700 = $320,100

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6 0
3 years ago
A certain city reports the following year-end total assets: General Fund $18,400,000 Library Fund (a special revenue fund) 2,900
kolbaska11 [484]

Answer:

B) General Fund and Library Fund

Explanation:

Major funds are those that include revenues, assets, expenditures and liabilities that account for at least 10% of all the government funds.

In this case the total government funds = $26,300,000

so 10% of total funds = $26,300,000 x 10% = $2,630,000

only the general fund ($18,400,000 ≥ $2,630,000) and the library fund (2,900,000 ≥ $2,630,000) are higher than the 10% threshold.

4 0
3 years ago
Read 2 more answers
You oversee the $250 petty cash for your company. When an employee needs a special item that is not in inventory, you take money
sergey [27]

Answer:

Since this is the first time you have ever done this, is this a problem?

Of course this is a problem, you stole money. Stealing money is not right and it is a problem. If someone finds out, you will lose your job. legally, you could also be prosecuted, but the amount is very little. Another problem is that if you are able to go unpunished and no one finds out, this behavior will continue until you cannot hide it anymore. By then , the amount might be larger, not just a few dollars, and you will be in deep trouble.

If so, what steps should be taken to fix this problem? If not, why not?

Pay back the money you took. Simple as that. Sometimes, doing the correct thing is not difficult. Do not spend money on unnecessary things and pay the $30. Do it before this becomes a bad habit and you get into serious trouble that seriously damage your career. No company will hire someone fired for stealing money form their previous employer.

8 0
3 years ago
Which customer is an internal customer of Eureka Computer Solutions?
alexandr1967 [171]

Nowzer, a sales distributor for Eureka Computer Solutions is an internal customer of Eureka Computer Solutions.

<h3>Who is an internal customer?</h3>

For a company, an internal customer is the one who has direct relationship with the company hence dependent on them.

Hence, Nowzer, a sales distributor for Eureka Computer Solutions is an internal customer of Eureka Computer Solutions.

Learn more about internal customers here : brainly.com/question/2040044

#SPJ1

6 0
2 years ago
Shawn Company had 130 units in beginning inventory at a total cost of $13,650. The company purchased 260 units at a total cost o
Katarina [22]

Answer:

FIFO

cost of the ending inventory = $15,680

cost of goods sold  = $39,570

LIFO

cost of the ending inventory  = $10,290

cost of goods sold  = $44,960

Average Cost Method

cost of the ending inventory = $13,883.37

cost of goods sold  = $41,336.76

Explanation:

The cost of the ending inventory and the cost of goods sold under FIFO, LIFO, and average-cost are calculated as follows :

Step 1 : Determine the Number of units sold

Number of units sold = Total units available for sale - Ending units

                                   = 390 units - 98 units

                                   = 292 units

Step 2 : Determine the Number of units in inventory

Number of units in inventory = 98 units (given)

Step 3 : Use the appropriate principles to calculate required values

<u>FIFO</u>

cost of the ending inventory = 98 x $160 = $15,680

cost of goods sold = 130 units x $105 + 162 units x $160 = $39,570

<u>LIFO</u>

cost of the ending inventory = 98 x $105 = $10,290

cost of goods sold = 260 units x $160 + 32 units x $105 = $44,960

<u>Average Cost Method</u>

Unit Cost = ($13,650 + $41,600) ÷ 390 units = $141.667

therefore,

cost of the ending inventory = 98 x $141.667 = $13,883.37

cost of goods sold = 292 units x $141.667 = $41,336.76

3 0
3 years ago
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