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Mrac [35]
2 years ago
9

E16.9 (LO 2) (Issuance of Bonds with Stock Warrants) On May 1, 2020, Friendly Company issued 2,000 $1,000 bonds at 102. Each bon

d was issued with one detachable stock warrant. Shortly after issuance, the bonds were selling at 98, but the fair value of the warrants cannot be determined. Instructions a. Prepare the entry to record the issuance of the bonds and warrants. b. Assume the same facts as part (a), except that the warrants had a fair value of $30. Prepare the entry to record the issuance of the bonds and warrants.
Business
1 answer:
slavikrds [6]2 years ago
3 0

Answer:

Date        Particulars                                         Debit              Credit

1 May 20   Cash                                                  $2,040,000

                (2000000*1.02)

                Discount on bonds payable              $40,000

                (2000000*(1-0.98)

                      Bonds payable                                                    $2,000,000

                      (2000*$1000)

                      Paid in capital-stock warranties                         $80,000

                      (2000000*(20000000*0.98)

b. Fair value of bonds = 2000000*0.98 = 1960000

Fair value of warrants = 2000*30= 60000

Fair value = 2020000

Allocated to bonds = 1960000/2020000*2040000 = 1940594

Allocated to warrants = 6000/2020000*2040000 = 60594

Date        Particulars                                            Debit              Credit

1 May 20   Cash                                              $20,400,000

               (20000000*1.02)

                Discount on bonds payable        $20594

                (20000000-1979406)

                      Bonds payable                                                    $2,000,000

                      Paid in capital-stock warranties                         $60594

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__________ and ________ are stimulus preference assessment methods, while ________ and __________ are reinforcer assessment meth
jekas [21]

Answer:

The correct answer is A. Free-operant, trial-based; concurrent schedules, multiple schedules

The correct full sentence is:

Free operant and trial-based are stimulus preference assessment methods, while concurrent schedules and multiple schedules are reinforcer assessment methods.

7 0
3 years ago
A country that has a highly specialized economy is most likely to experience
bazaltina [42]

It does not produce all the essential goods its people need would be the correct statement.

<h3>What is a specialization economy?</h3>

Specialization economy is the economy, which focus only on one task rather on focusing so many tasks in a single time.

It is one of  the most efficient economy, because it consumes very less money and time in the manufacturing of the goods.

The specialization economy may also benefits in the international trade.

Learn more about the specialization economy here:-

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4 0
2 years ago
Amber Corporation donated inventory of clothing (basis of $136,000, fair market value of $170,000) to a qualified charitable org
viva [34]

Answer:

charitable contribution deduction =  $153000

Explanation:

given data

basis = $136,000

fair market value = $170,000

solution

we get here charitable contribution deduction that is express as

charitable contribution deduction = Basis + 50% of (Fair - basis)    .......................1

put here value and we get

charitable contribution deduction = $136,000 + 0.50 ($170,000 - $136,000 )

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3 0
3 years ago
Stock Y has a beta of 1.2 and an expected return of 14.5 percent. Stock Z has a beta of .7 and an expected return of 9.3 percent
emmasim [6.3K]

Answer:

Reward to risk ratio = (Expected return - Risk free rate) / Beta  

Reward to risk ratio of Y = ( 0.145 - 0.056) / 1.2

Reward to risk ratio of Y = 0.089 / 1.2

Reward to risk ratio of Y = 0.0741666

Reward to risk ratio of Y = 7.42%

Reward to risk ratio of Z = (0.093 - 0.056) / 0.7

Reward to risk ratio of Z = 0.037 / 0.7

Reward to risk ratio of Z = 0.0528571

Reward to risk ratio of Z = 5.29%

Security market line (SML) reward-to-risk ratio is the market risk premium itself which is 6.6%.

Stock Y has a reward-to-risk ratio that is higher than the market risk premium, it is currently under-valued in the market. Similarly, since stock Z has a reward-to-risk ratio that is lower than the market risk premium, it is currently over-valued in the market.

8 0
3 years ago
A paid advertisement for the Texas Department of Economic Development, Tourism Division, invited readers of a magazine to mail i
lawyer [7]

Answer: Lead generation  

     

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In the given case, the Texas department is trying to attract tourists to visit their state. It is the first time they are trying to do so by inviting the readers of magazines.

Hence from the above we can conclude that the primary purpose of their ad was lead generation.

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