Under the Best efforts method, the underwriter sells as many shares as possible but may or may not sell all of the new shares.
The best efforts method is used in the oil and gas industry to account for certain operating expenses sells as many shares as possible. Under the successful efforts method, a company only capitalizes those costs associated with the location of new oil and gas reserves when those reserves have been found.
The term best efforts refers to an agreement made by a service provider to do whatever it takes to fulfill the requirements of a contract. In finance, an underwriter makes a best efforts or good faith promise to the issuer to sell as much of their securities offering as possible. While the two parties come to an agreement for the sale of some securities, the underwriter doesn't guarantee to sell them all.
- Best efforts is a term for a commitment from an underwriter to make their best effort to sell as much as possible of a securities offering.
- It is also a general service agreement term used in place of a firm deliverable commitment.
- The opposite is a firm commitment or bought deal, in which the underwriter buys all shares or debt and has to sell it all to make money.
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Answer:
The entry made by Trust Company on January 1 to record the proceeds and issuance of the note is
Debit Credit
Cash $100,000
Notes Payable $100,000
The right answer is c
Explanation:
According to the given data the interest will not be adjusted at the time of loan proceed and issuance of note
Therefore, The entry made by Trust Company on January 1 to record the proceeds and issuance of the note is the following:
Debit Credit
Cash $100,000
Notes Payable $100,000
To record the borrowing
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Based on the information the appropriate journal entry to record the transaction is : Debit to cash of $100,000; Credit to bonds payable of $100,000.
Based on the information given we were told that the cash amount of $100,000 cash was received my the company in exchange for issuing 100 bonds at their $1,000 face value.
Therefore the correct journal entry to record the transaction is:
Debit Cash $100,000
Credit Bonds payable $100,000
(To record bonds payable)
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Answer:
![\left[\begin{array}{cccc}&$Flexible Budget&$Actual&$Variance\\$Sales&548,000&500,000&48000U\\$Variable&-82,200&-113,700&31,500U\\$Contribution&465,800&386300&79,500U\\$Fixed Cost&-142,000&-134,000&8,000F\\$Income&323,800&252300&71,500U\\\end{array}\right]](https://tex.z-dn.net/?f=%5Cleft%5B%5Cbegin%7Barray%7D%7Bcccc%7D%26%24Flexible%20Budget%26%24Actual%26%24Variance%5C%5C%24Sales%26548%2C000%26500%2C000%2648000U%5C%5C%24Variable%26-82%2C200%26-113%2C700%2631%2C500U%5C%5C%24Contribution%26465%2C800%26386300%2679%2C500U%5C%5C%24Fixed%20Cost%26-142%2C000%26-134%2C000%268%2C000F%5C%5C%24Income%26323%2C800%26252300%2671%2C500U%5C%5C%5Cend%7Barray%7D%5Cright%5D)
Explanation:
Sales Price: 434,000 / 21,700 = 20
Variable cost: 65,100 / 21,700 = 3
fixed cost: 142,000
Values at 27,400 units:
sales: 27,400 units x $20 = 548,000
variable cost: 27,400 units x $3 = 82,200
Now, we compare with the actual result and calcualte the income
