1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
storchak [24]
2 years ago
13

Marigold Inc. has decided to raise additional capital by issuing $184,000 face value of bonds with a coupon rate of 9%. In discu

ssions with investment bankers, it was determined that to help the sale of the bonds, detachable stock warrants should be issued at the rate of one warrant for each $100 bond sold. The value of the bonds without the warrants is considered to be $144,900, and the value of the warrants in the market is $16,100. The bonds sold in the market at issuance for $144,500. (a) What entry should be made at the time of the issuance of the bonds and warrants
Business
1 answer:
shusha [124]2 years ago
6 0

Answer:

         Account Titles                                                  Debit                 Credit

         Cash                                                              $144,500

          Discount on Bonds Payable                       $‭53,941‬

          Bonds Payable                                                                      $184,000

          Paid-in Capital Stock Warrants                                            $  14,441                       

Working:

Discount on bonds payable = Bonds payable + Paid in capital stock warrant - cash

= 184,000 + 14,441 - 144,500

= $‭53,941‬

Value of bonds with warrants:

= 144,900 + 16,100

= $161,100

Value of warrants is therefore:

= Cash received / Value of bond with warrants * value of warrants

= 144,500 / 161,100 * 16,100

= $14,441

You might be interested in
Answer the above Questions ​
Sergio [31]

Answer:

mmmm its only about India

Explanation:

i dont stay in India

5 0
3 years ago
Read 2 more answers
The internal financial statements of Vera Incorporated show that their beaded purses incurred an operating loss in the most rece
brilliants [131]

Answer:

Vera Incorporated

Change in annual operating income from discontinued business:

Annual Operating Income would reduce by $78,000.

Explanation:

a) Calculation of the Net Income Lost:

Loss of Contribution        ($99,000)

Avoidable fixed cost          $21,000

Reduction of Income       ($78,000)

b) The line of purses contributes $80,000 towards the company's fixed cost.  Therefore, discontinuing this line of business would lead to the loss of this steam of income.  The amount of reduced operating income will be $78,000 ($80,000 - 2,000).

4 0
3 years ago
Internal users of financial information: Multiple Choice Are not directly involved in operating a company. Are those individuals
Fudgin [204]

Internal users of financial information Are those individuals involved in managing and operating the company.

Answer: Option (B) is correct.

Explanation:

Internal users are people inside the organization. Internal users of financial information are those who are directly involved in managing and operating the organization. They make use of the information to improve the efficiency and effectiveness of an organization.

Internal users consist of all managers like purchase managers, human resource managers, marketing managers, service managers, etc. it consists of employees and the owner of a concern. Internal users take various important decisions based on financial information.

3 0
3 years ago
Which economic indicator measures inactivity rather than activity ?
Reil [10]
B, unemployment rate.
5 0
3 years ago
Oscar pistorius sport personalites , descrition of the situation he faced that were negetively exploited by the media
Sav [38]
Oscar Pistorius, the sports personality, faced a situation of a murder case that negatively exploited by the media. Oscar Pistorius is a South African sprint runner who competed in Paralympic events. He was convicted as a murderer for the murder case of his girlfriend, Reeva. There were many frenzied media that distract the trial process.
7 0
3 years ago
Other questions:
  • During January, the following selected transactions occurred.
    12·1 answer
  • Triangle Enterprises has no debt but can borrow at 8 percent. The firm's WACC is currently 13.2 percent, and there is no corpora
    5·1 answer
  • Fournotts Corp., a sports shoe manufacturer, launched a new sports shoe.As a part of publicity, it invited its customers to try
    15·1 answer
  • Axtara, an automobile manufacturer, has several factories in foreign countries. The management strongly believes in giving prece
    8·1 answer
  • Becoming more efficient and minimizing start-up costs are ways to
    10·1 answer
  • An estimated demand curve does not necessarily match actual data perfectly because A. it is not possible to accurately calculate
    11·1 answer
  • Suppose that over the past year, the real interest rate was 6 percent and the inflation rate was -2 percent. It follows that a.
    12·1 answer
  • How might buyers' perceptions of price influence pricing decisions?
    6·1 answer
  • If the united states government raises the income taxes on the wealthiest americans, while increasing welfare payments to the po
    10·1 answer
  • The government should extend the duration of unemployment benefits to those workers who lost their jobs due to outsourcing. This
    12·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!