Proceeds from the bond issue as an increase in liabilities

Assignment Help Financial Accounting
Reference no: EM13911981

On April 1, 2016, Austere Corporation issued $320,000 of 10% bonds at 107. Each $1,000 bond was sold with 30 detachable stock warrants, each permitting the investor to purchase one share of common stock for $18. On that date, the market value of the common stock was $14 per share and the market value of each warrant was $4. Austere should record what amount of the proceeds from the bond issue as an increase in liabilities?

Reference no: EM13911981

Questions Cloud

Infinite number of forms of matter : The Universe is surely a vast, infinite place with an infinite number of forms of matter. The Universe is the house for all that is large and unseen (except with the aid of a telescope) as well as small and unseen (except with the aid of a microsc..
Calculate firm current liabilities and working capital : Firm N has a current ratio of 2.6 and current assets of $150,800.
Estimate the percentage of a pools cost that can be recouped : Using these data, and assuming that the average current purchase price of the pools in the sample is $32,500, estimate the percentage of a pool's cost that can be recouped when the home is sold.
The fundamental concepts of various models of leadership : Please write your final reflective paper about your leadership and how this course has helped you in your development. ( Course name is Leadership foundations) The objectives of this course are to develop within the student:• An understanding of the ..
Proceeds from the bond issue as an increase in liabilities : On April 1, 2016, Austere Corporation issued $320,000 of 10% bonds at 107. Each $1,000 bond was sold with 30 detachable stock warrants, each permitting the investor to purchase one share of common stock for $18. On that date, the market value of the ..
Genreal background information regarding the country cuba : Prepare a word document of the genreal background information regarding the country Cuba, including, but not limited to, the corporate tax system, and import and export policies.
Included in each shareholders gross income : Miyasyke, Inc., a calendar year S corporation, has five equal shareholders at the end of the tax year. Miyasyke had $75,000 of taxable income. Miyasyke made distributions to its shareholders of $32,000 each, for a total of $160,000. Each shareholder'..
Calculate firms working capital and current ratio : Firm O has accounts receivable of $31,000, cash of $14,600, property, plant, and equipment of $320,000, merchandise inventory of $43,200, accounts payable of $22,100, other accrued liabilities of $7,500, common stock of $250,000, and retained earning..
Discuss how to select strategies for negotiating prices : Discuss how to select strategies for negotiating prices

Reviews

Write a Review

Financial Accounting Questions & Answers

  Sell or process further

Port Allen Chemical Company processes raw material D into joint products E and F. Raw material D costs $4 per liter. It costs $100 to convert 100 liters of D into 60 liters of E and 40 liters of F. Determine whether Product F should be sold or proces..

  Questionthe bishop company has a balance in the warranty

questionthe bishop company has a balance in the warranty obligation account of 400000. an analysis of the products sold

  What consequences positive or negative might this have

The monitoring of costs has been continuing, and balance sheets are looking worse. What consequences, positive or negative, might this have for fraud prevention, both now and in the future?

  Determine the upper limit of deviation for each of controls

Determine the upper limit of deviation for each of the controls. What impact do these results have on the type of opinion to be given on the client's internal controls?

  Explain all tax consequences of these events for both

Willy makes only one premium payment on the insurance policy of $50 when Joe is killed in an auto accident. Willy collects the $25,000. Explain all tax consequences of these events for both Joe and Willy.

  What are different types of decisions that users make

What are the different types of decisions that users of financial accounting information must make? What are  different types of decisions that users of managerial accounting must make?

  Time of the issuance of the bonds and warrants

(Issuance of Bonds with Warrants) MagTech Inc. requires funding to build a new factory and has decided to raise the additional capital by issuing $850,000 face value of bonds with a coupon rate of 10%. What entry should be made at the time of the iss..

  Compute the amount of the inventory

The dollar-value LIFO method was adopted by Enya Corp. on January 1, 2014. Its inventory on that date was $263,440. On December 31, 2014, the inventory at prices existing on that date amounted to $248,640. Compute the amount of the inventory at Decem..

  Taxable income and the tax rate remains

In 2014, its first year of operations, Kimble Corp. has a $770,000 net operating loss when the tax rate is 35%. In 2015, Kimble has $320,000 taxable income and the tax rate remains 35%.

  Describe statement of cash flows

Given the above information, prepare a statement of cash flows for Doug Corporation for the year 2009 on a separate Excel spreadsheet as directed on the Problem Set 1 directions.

  Expense transfers-what is proper accounting treatment

You have just landed an accounting position with a national telecommunications company. Because this is your first job you are eager to please your co-workers and your supervisor who works closely with the controller. In addition, your supervisor giv..

  Compute the total cost of making and buying the parts

Compute the incremental profit (loss) for each product and which product or products should be sold at the split-off point - compute the total cost of making and buying the parts.

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!

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