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]
3 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]3 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
This is not one of the important questions when countries decide how to allocate income: "who will consume what is produced?"
Lorico [155]
The answer to this question is false for this is the question that is important in business when countries decides on allocating income because they need to think about those who will consume the products that has been produced because if this is not prioritized, the business will most likely fail for the consumers are one of the important factors that will contribute to the success of the business.
8 0
3 years ago
Market research on products distributed to markets is conducted
Butoxors [25]
Throughout the life of the product
5 0
3 years ago
Culver Corporation has retained earnings of $718,500 at January 1, 2017. Net income during 2017 was $1,596,000, and cash dividen
Norma-Jean [14]

Explanation:

The preparation of the retained earnings statement for the year ended December is presented below:

                                         Culver Corporation

                             Retained Earning statement

                        For the year ended December 31, 2017

Beginning balance of retained earning $718,500

Add: Correction recorded $86,470

Add: Net income $1,596,000

Less: Cash Dividend paid -$80,500

Ending balance of retained earning                        $2,320,470

4 0
3 years ago
Molly, a company mediator, had agreed to help Martin and Samir. The two men had been in constant disagreement ever since they be
SashulF [63]

Answer:

By taking into account differences in the Hispanic American community's cultural orientation, Samir is considering their __________ when determining the proposal approach.

b) subculture

Explanation:

The Hispanic American community's cultural orientation is a form of subculture.  While being an integral part of the American society, the Hispanic American community still maintains specific characteristics of the Hispanic culture in the U.S.A.  Since it is regarded as a group of people with differentiating cultural peculiarities from the general American culture, the Hispanic American subculture has developed its own norms and values based on its founding principles, and these are not applicable to the wider American society.

subculture is a group of people within a culture that differentiates itself from the parent culture to which it belongs, often maintaining some of its founding principles. Subcultures develop their own norms and values regarding cultural, political, and sexual matters

4 0
3 years ago
On January 2, 2018, Jensen Corporation sells equipment it manufactured to Lewisburg Fabricators in exchange for an $80,000 note
lord [1]

Answer:

Explanation:

Interest = Carrying value *Interest rate = $54,447*8% = $4356

Amountof interest to be recognized is  $4356

8 0
3 years ago
Other questions:
  • Capacity conciderations in a hospital ​
    15·1 answer
  • A major shift for personnel management arrived in the 1930's with the emergence of:
    10·1 answer
  • which function would be used to remove a section pf text from a document? A.cut B.copy C.paste D.undo
    10·1 answer
  • Which of the following statements best represents the fact that I cannot put in extra hours of work because of scarcity?
    14·1 answer
  • A firm material called lauan placed on a wooden or hollow metal frame, which can be painted and, in addition, have three-dimensi
    6·1 answer
  • The nato nations have agreed that in the case of an attack against a member nation??
    12·2 answers
  • Is advertising a fixed variable?
    11·2 answers
  • Answer the following question using the information below:
    10·1 answer
  • Why Az for 30% is -0.05
    10·1 answer
  • Barry pays $200 per month for his insurance coverage, whether he uses it or not. This payment is called a ______.
    10·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!