Reference no: EM131293691
On January 1, 2014, Gottlieb Corporation issued $4,450,000 of 10-year, 9% convertible debentures at 102. Interest is to be paid semiannually on June 30 and December 31. Each $1,000 debenture can be converted into 9 shares of Gottlieb Corporation $103 par value common stock after December 31, 2015.
On January 1, 2016, $445,000 of debentures are converted into common stock, which is then selling at $115. An additional $445,000 of debentures are converted on March 31, 2016. The market price of the common stock is then $120. Accrued interest at March 31 will be paid on the next interest date.
Bond premium is amortized on a straight-line basis.
Make the necessary journal entries for:
(a) December 31, 2015. (c) March 31, 2016.
(b) January 1, 2016. (d) June 30, 2016.
Record the conversions using the book value method.
|
Determine the payback period-arr and npv
: Company X is planning on purchasing a 3-D printer. The expected cost of this printer is $75,000, and it is expected to have a useful life of 6 years and an estimated salvage value of $3,000. Assuming Company X is in the 34% tax bracket and has a mini..
|
|
What were total direct costs for finance department
: Cherry Community Hospital has three support departments—administration, housekeeping, and finance—and three patient service departments—medicine, surgery, and pharmacy. what were total direct costs (the original cost pool) for the finance department?
|
|
Determine the breakeven point in total units
: Smith Company can produce two types of carpet cleaners, Brighter and Cleaner. Data on these two products are as follows: Using a spreadsheet, determine the breakeven point in total units for Smith Company, assuming that the sales mix (based on physic..
|
|
Trend analysis focusing on current ratio-quick-cash ratio
: Given the following comparative financial data, conduct a trend analysis focusing on current ratio, quick ratio and cash ratio.
|
|
Record the conversions using the book value method
: On January 1, 2014, Gottlieb Corporation issued $4,450,000 of 10-year, 9% convertible debentures at 102. Interest is to be paid semiannually on June 30 and December 31. Each $1,000 debenture can be converted into 9 shares of Gottlieb Corporation $103..
|
|
Prepare stockholders equity section of the balance sheet
: The following is a summary of all relevant transactions of Martinez Corporation since it was organized in 2017. In 2017, 14,600 shares were authorized and 7,700 shares of common stock ($60 par value) were issued at a price of $67. Prepare the stockho..
|
|
Source of cash under cash flows from investing activities
: A machine with a cost of $130,000 and accumulated depreciation of $85,000 is sold for $50,000 cash. The amount that should be reported as a source of cash under cash flows from investing activities is?
|
|
Cash break-even point units and variable cost
: Night Shades Inc. (NSI) manufactures biotech sunglasses. The variable materials cost is $15.60 per unit, and the variable labor cost is $5.70 per unit. What is the variable cost per unit? If the selling price is $41.50 per unit, what is the cash brea..
|
|
Encouraged a dishonest employee to commit fraud
: Think of an organization you currently work in or have worked for (or one you want to work for). What elements were present that encouraged a dishonest employee to commit fraud? Try to use the fraud triangle as a basis for your response.
|