User Account

All Pages

How much of the amount received on the date of issuance

Assignment Help Financial Accounting
Reference no: EM132758453

On February 1, 2020, Gates Company issued a P3,000,000 of 12% bonds at 104 which are due on January 31, 2023. In addition, each P1,000 bond was issued 15 warrants, each of which entitles the bondholder to purchase for P50 one ordinary share (P25 par value) of the company. On February 1, 2020, the fair market value of the ordinary share was P40 per share; the fair market value of the warrant was P4; and the fair market value of the bond ex-warrant was 101.

Problem (a) How much should the company record on February 1, 2020 as carrying value of the bonds?

Problem (b) How much of the amount received on the date of issuance is attributable to the equity component?

Problem (c) How much is the premium on bonds payable at the date of issuance?

Reference no: EM132758453

Questions Cloud

What evaluation methods are used in your organization : Explain how the Decision Analysis Model may be used in your organization? What Evaluation Methods are used in your organization?
Calculate the valuation for both the warriors : The 76ers just sold 10% of their franchise for $50M. If the average controlling interest premium for the NBA is 120%, what is the 76ers franchise worth?
Difference between uk and german corporate governance codes : What are the difference between the UK and German Corporate Governance Codes? Provide example of real incident. Impact of UK corporate governance structures.
Transport planning models for passenger-freight transport : Compare and contrast the transport planning models for passenger and freight transport.
How much of the amount received on the date of issuance : Gates Company issued a P3,000,000 of 12% bonds, How much of the amount received on the date of issuance is attributable to the equity component?
Create a project management plan : Create a Project Management Plan - The council approved the Project Charter on the 1st of June and want the playground to be finished by the 1st December
The leader as communicator : Can you imagine an effective leader who is not an effective communicator? What are some key communication competencies needed in leaders today?
Explain factors that could affect the estimations : Briefly explain any two (2) factors that could affect the estimations of recoverable amount for the companies in the transportation sector
How depreciation and accelerated depreciation affect project : Discuss a business example that shows how depreciation and accelerated depreciation can affect project cash flows. What would your process be to ensure that.

Reviews

Write a Review

Financial Accounting Questions & Answers

  Financial statement analysis and preparation

Financial Statement Analysis and Preparation

  Shareholder of a company

Describe the ways that a person can become a shareholder of a company. Why Wal-Mart would split its stock?

  Financial and accounting principles

An understanding of financial and accounting principles can be a valuable tool for managers. While not all managers will find themselves calculating financial ratios or preparing annual financial data.

  Prepare a statement of cash flow using the direct method

Prepare a Statement of Cash Flow using the Direct Method and Prepare the Operations section of the Statement of Cash Flow using the Indirect Method.

  Financial accounting assignment

This assignment has one case study and two question apart from case study. Questions related to document Liquidation question and Company financial statements question - Torquay Limited

  Prepare general journal entries for goela

Prepare general journal entries for Goela Ltd

  Principles of financial accounting

Prepare the journal entry to record the acquisition of the assets.

  Prepare general journal entries to record the transactions

Prepare general journal entries to record the transactions, assuming use of the periodic inventory system

  Global reporting initiative

Compare the view espoused by the economist Milton Friedman about the social responsibilities of business with the views express by Stigler.

  Explain the iasb conceptual frameworks

Explain the IASB Conceptual Framework's perspective of users and their decisions.

  Determine the company''s financial statements

T he focus of the report is to determine the extent to which you are comfortable relying on the financial statements as presented by management .

  Computation of free cash flow

Computation of Free Cash Flow

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

Submit Assignment

Academics

Major Subjects

Majors

Get In Touch

whatsapp: +1-415-670-9521

Phone: +1-415-670-9521

Email: [email protected]

TERMS & POLICIES

HELP & SUPPORT

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd