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seraphim [82]
2 years ago
12

Bramble Corp. has $3960000 of 9% convertible bonds outstanding. Each $1,000 bond is convertible into 30 shares of $30 par value

common stock. The bonds pay interest on January 31 and July 31. On July 31, 2021, the holders of $1250000 bonds exercised the conversion privilege. On that date the market price of the bonds was 106 and the market price of the common stock was $37. The total unamortized bond premium at the date of conversion was $289000. Bramble should record, as a result of this conversion, a
Business
1 answer:
natta225 [31]2 years ago
4 0

Answer: Credit of $217480 to Paid-in Capital in Excess of Par

Explanation:

The following information is given in the question as:

Debit: Bonds payable = $1,250,000

Debit: Premium on bonds payable = $92480

Credit: Common stock = $1,125,000

Credit: Paid in capital in excess of Par = $217480

The above were calculated as:

Common stock = ($1250,000/$1,000) × 30 × 30

= $1250 × 90

= $1,125,000

% Conversion will be:

= $1,250,000 / $3960000 = 0.32

Unamortized bond premium will then be:

= 0.32 × $289,000

= $92,480

Paid in capital in excess of par will be:

= $1,250,000 + $92,480- $1,125,000

= $217,480

Therefore, the answer will be to

"Credit of $217480 to Paid-in Capital in Excess of Par"

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Having internet, catalog, and store offerings makes staples a(n) multiple choice full-line discount store. omnichannel retailer.
Eduardwww [97]

The correct answer is supercenter. Staples Inc. is an American retail company and is a supercenter.

With its corporate headquarters in Framingham, Massachusetts, Staples Inc. is an American retailer that provides goods and services that assist both learning and working. Over 1,000 Staples locations will offer same-day passport photo services in 2022, and a few will also offer TSA PreCheck enrollment.

Leo Kahn, Thomas G. Stemberg, and Myra Hart created Staples. In 1985, as Stemberg was preparing a proposal for a different company, he had the concept for Staples. He needed a ribbon for his printer but couldn't get one because his neighborhood store was closed for the Fourth of July. Because of his experience in the food industry and his aggravation with the need to rely on small shops for essential supplies, Stemberg had the idea for an office supply superstore.

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8 0
1 year ago
A _____________ is a company that has a proven business model and is willing to sell the rights to use the business model to oth
scoundrel [369]

Answer: Franchise

                       

Explanation: In simple words, a franchise refers to an arrangement under which one entity allows other entity to use its business models, procedures and intellectual properties etc, in return of any loyalty or other such benefit.

This is a common arrangement nowadays and is usually used by the organisations to operate their business globally.

Hence from the above we can conclude that the correct answer is franchise.

6 0
3 years ago
You have just received a windfall from an investment you made in a​ friend's business. He will be paying you at the end of this​
ohaa [14]

Answer:

a. $80,318.70

b. $97,568.57

Explanation:

Here is the full question :

You have just received a windfall from an investment you made in a​ friend's business. She will be paying you $ 15 comma 555 at the end of this​ year, $ 31 comma 110 at the end of next​ year, and $ 46 comma 665 at the end of the year after that​ (three years from​ today). The interest rate is 6.7 % per year. a. What is the present value of your​ windfall? b. What is the future value of your windfall in three years​ (on the date of the last​ payment)?

Present value is the sum of discounted cash flows

Present value can be calculated using a financial calculator

Cash flow in year 1 = $ 15,555

Cash flow in year 2 = $31,110

Cash flow in year 3 =  $ 46,665

I = 6.7%

Present value = $80,318.70

The formula for calculating future value:

FV = P (1 + r)^n

FV = Future value  

P = Present value  

R = interest rate  

N = number of years  

$80,318.70(1.067)^3 = $97,568.57

3 0
3 years ago
GDP, or Gross Domestic Product is (most precisely) defiend as Your answer: value of all final goods and services produced for th
ser-zykov [4K]
GDP is the total market value of all final goods and services produced within a country in a given period of time.
8 0
3 years ago
New steel products has total assets of $820,470, a total asset turnover rate of 1. 39, a debt-equity ratio of 2. 8, and a return
nadya68 [22]

The firm's net income is $114,045,330.

Total Asset Turnover = Sales / Assets

or, 1.39 = Sales / $820,470

Sales = $820,470 × 1.39 = $1,140,453.3

Now,

Equity Multiplier

= Assets / Equity

= (Debt + Equity) / Equity

= (2.8 + 1) / 1

= 3.8

(Debt equity ratio has been used here)

As per Dupont Analysis,

ROE = Profit margin x Asset Turnover x Equity Multiplier

or, 0.34% = Profit Margin x 1.39 x 3.8

Profit Margin = 5.282%

Profit Margin = Net Income / Sales x 100

5.282% = Net Income / $1,140,453.3 x 100

Thus, Net Income = $114,045,330

Net income is an amount which an individual or business makes after deducting costs, taxes, and allowances. Thus, net income is what the business has left over after all its expenses.

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7 0
2 years ago
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