Reference no: EM131257404
2A Eisler Corporation issued 2,490 $1,000 bonds at 102. Each bond was issued with one detachable stock warrant. After issuance, the bonds were selling in the market at 99, and the warrants had a market price of $44.Use the proportional method to record the issuance of the bonds and warrants.
2B. Eisler Corporation issued 2,560 $1,500 bonds at 102. Each bond was issued with one detachable stock warrant. After issuance, the bonds were selling separately at 98. The market price of the warrants without the bonds cannot be determined. Use the incremental method to record the issuance of the bonds and warrants.
2C. Eiser Inc. has decided to raise additional capital by issuing $176,400 face value of bonds with a coupon rate of 11%. In discussions 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 $140,250, and the value of the warrants in the market is $24,750. The bonds sold in the market at issuance for $161,500.(a) What entry should be made at the time of the issuance of the bonds and warrants?(b) Prepare the entry if the warrants were nondetachable.
2D. On May 1, 2014, Friendly Company issued 3,220 $1,000 bonds at 102. Each bond was issued with one detachable stock warrant. Shortly after issuance, the bonds were selling at 97, but the fair value of the warrants cannot be determined.(a) Prepare the entry to record the issuance of the bonds and warrants. (b) Assume the same facts as part (a), except that the warrants had a fair value of $22. Prepare the entry to record the issuance of the bonds and warrants.
|
Record the replacement of the units returned
: Shefford Cutlery extends a lifetime replacement warranty on all units sold. Using past experience, the company estimates that 0.5% of units sold will be returned and require replacement at an average cost of $108 per unit. Record the replacement of t..
|
|
What does trust have to do with bioethics give examples
: What does "trust" have to do with bioethics? Give examples. If you were trying to convince a patient in a third-world country that a Western, first-world doctor is trustworthy, how would you go about it?
|
|
Inventory by the conventional retail inventory method
: Compute the inventory by the conventional retail inventory method. Sales Revenue 99,000. Sales Returns 2,000. Markups 10,000. Markup cancellations 1,500.
|
|
Cash equivalents and investments on balance sheet
: Classification of cash equivalents and investments on balance sheet. Classify each of the following items as a cash equivalent, a short-term investment, or a long-term investment,
|
|
Record the issuance of the bonds and warrants
: Eisler Corporation issued 2,490 $1,000 bonds at 102. Each bond was issued with one detachable stock warrant. After issuance, the bonds were selling in the market at 99, and the warrants had a market price of $44.Use the proportional method to record ..
|
|
Determine the balance in unearned revenue
: All-Weather Walks is a lucrative paving stone installation business that operates from about April to October each year. Clients arrange for their own paving stones and All-Weather is contracted to provide the installation. The company has an outstan..
|
|
Net income on operations from discontinued component
: On July 4, Y2, ABC Inc. sold a component of their business to XYZ Inc. for $690,000. ABC determined the component would be discontinued in Y1 and properly reported the component in the discontinued operations section of the income statement. Determin..
|
|
Ending inventory at costusing conventional retail method
: Boyne Inc. had beginning inventory of $12,000 at cost and $20,000 at retail. Netpurchases were $120,000 at cost and $170,000 at retail. Net markups were $10,000; netmark downs were $7,000; and sales revenue was $147,000. Compute ending inventory at c..
|
|
The expected overhead costs for the next fiscal year
: Cain Company makes three products in its factory: plastic cups, plastic tablecloths, and plastic bottles. The expected overhead costs for the next fiscal year include the following. Cain uses machine hours as the cost driver to allocate overhead cost..
|