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quester [9]
2 years ago
11

On January 2, 2021, Farr Co. issued 10-year convertible bonds at 105. During 2021, these bonds were converted into common stock

having an aggregate par value equal to the total face amount of the bonds. At conversion, the market price of Farr's common stock was 50 percent above its par value. On January 2, 2021, cash proceeds from the issuance of the convertible bonds should be reported as:_______.
a. paid-in capital for the entire proceeds.
b. paid-in capital for the portion of the proceeds attributable to the conversion feature and as a liability for the balance.
c. a liability for the face amount of the bonds and paid-in capital for the premium over the face amount.
d. a liability for the entire proceeds.
Business
1 answer:
zmey [24]2 years ago
5 0

Answer:

d. a liability for the entire proceeds.

Explanation:

In the case when the bonds would be converted into common stock and the market price of the common stock is 50% over its par value so the cash proceeds that arise from the issuance of the convertible bonds would be reported as the liability as the same would be credited to the liability account

Therefore the right option is d.

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Costs being equal, when a firm has a higher value gap than its competitor, it can be inferred that the firm:
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Nikhil is a design manager for a production company. He independently assigns teams, chooses projects, researches trends, and is
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Answer: Based on this description, it's safe to say that Nikhil's job is high in c. autonomy.

Explanation:

What is meant by an autonomy character?

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6 0
3 years ago
A manager experiences a cashier shortage that averages $50. 00 per day. if the manager's operation is open 360 days per year, wh
ad-work [718]

A manager experiences a cashier shortage that averages $50. 00 per day. if the manager's operation is open 360 days per year, 1800 will be this manager's annual revenue loss due to cashier shortages

In colloquial language, the average is a single number representing a list of numbers, usually the sum of the numbers divided by the number of numbers in the list. For example, the average of the numbers 2, 3, 4, 7, and 9 is 5.

Suppose there are four types of means: mean, mode, median, and range. In fact, the range is a measure of spread or spread, while others are the most common "measure of central tendency".

Noun. Mean, Mean, Median, Standard means something that represents the midpoint. The average is the quotient obtained by dividing the sum of a set of numbers by the number of numbers. scored an average of 85 points on the test. The mean is the simple mean or the middle value between the two extremes.

In colloquial language, the average is a single number representing a list of numbers, usually the sum of the numbers divided by the number of numbers in the list. For example, the average of the numbers 2, 3, 4, 7, and 9 is 5.

Suppose there are four types of means: mean, mode, median, and range. In fact, the range is a measure of spread or spread, while others are the most common "measure of central tendency".

Noun. Mean, Mean, Median, Standard means something that represents the midpoint. The average is the quotient obtained by dividing the sum of a set of numbers by the number of numbers. scored an average of 85 points on the test. The mean is the simple mean or the middle value between the two extremes.

Learn more about averages   here

brainly.com/question/20118982

#SPJ4

5 0
1 year ago
Pasadena Candle Inc. budgeted production of 730,000 candles for the January. Wax is required to produce a candle. Assume 13 ounc
Olin [163]

Answer:

Direct material budget (in pounds)= 588,125

Direct material budget ($)= $941,000

Explanation:

Giving the following information:

Production= 730,000 candles

Direct material required for each unit:

13 ounces of wax

The estimated January 1 wax inventory is 18,600 pounds.

The desired January 31 wax inventory is 13,600 pounds.

Candle wax costs $1.60 per pound.

The direct material purchases are determined by the production requirements, the beginning inventory, and the ending inventory.

First, we need to calculate the amount of wax for the period:

Production= 730,000 candles*13 ounces= 9,490,000 ounces

In pounds= 9,490,000/16= 593,125 pounds.

Direct material budget (in pounds)= Production for the month + ending inventory - beginning inventory

Direct material budget (in pounds)= 593,125 + 13,600 - 18,600= 588,125

Direct material budget ($)= 588,125*1.6= $941,000

5 0
3 years ago
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