What amount should ruiz record on march

Assignment Help Accounting Basics
Reference no: EM132820218

Problem 1: On March 1, 2021, Riley Corporation issued $2,000,000 of 8% nonconvertible bonds at 104, which are due on February 28, 2041. In addition, each $1,000 bond was issued with 25 detachable stock warrants, each of which entitled the bondholder to purchase for $50 one share of Ruiz common stock, par value $25. The bonds without the warrants would normally sell at 95. On March 1, 2021, the fair value of Ruiz's common stock was $40 per share and the fair value of the detachable warrants was $2.00 each. What amount should Ruiz record on March 1, 2021 as paid-in capital from stock warrants?

Option 1: $104,000

Option 2: $73,600

Option 3: $85,200

Option 4: $100,000

Reference no: EM132820218

Questions Cloud

What is the minimum that morse creditors would receive : What is the minimum that Morse's creditors would receive if they have filed a claim for P50,000? Gonda, Herron and Morse is considering possible liquidation
What amount were the non-cash assets sold : For what amount were the non-cash assets sold? Liquidation expense are expected to be P12,000, After the liquidation expenses of P12,000
Explain role of accessory pigments such as the carotenoids : Chlorophylls are the main pigments that absorb photons of light in the reaction center and donate an electron to the electron transport chain.
Genetic diversity of herd of cattle : 1. A farmer wants to increase the genetic diversity of her herd of cattle. a. Explain why the farmer would want to increase the genetic diveristy of her herd.
What amount should ruiz record on march : The fair value of the detachable warrants was $2.00 each. What amount should Ruiz record on March 1, 2021 as paid-in capital from stock warrants?
Find out degenerative neurological disorder : Huntington's disease is a degenerative neurological disorder that leads to tremors, loss of motor control, wasting, and eventual death.
Which statements is correct regarding a partners debit : Which statements is correct regarding a partners' debit capital balances? Partners who absorb another's debit capital balance have a legal claim
Presence of mitochondria in most eukaryotes : The yellow-highlighted lineages are protists in this phylogenetic tree of the eukaryotes. Which of the following is true?
What the net debit to karr account is : he partners share net income and loss equally. The net debit to Karr's account (including any gain or loss on disposal of the machine) is

Reviews

Write a Review

Accounting Basics Questions & Answers

  Determine the gross profit

Purchases returns and allowances during the period 4,040 and Purchases during the period 77,100. Determine the gross profit

  Determine total cost transferred to finished goods inventory

Determine total cost transferred to finished goods inventory,the cost that should be assigned to Alpha' work in process inventory at the end of October 2017

  Compute the break-even point in units for melford company

Calculate the break-even point in units. Calculate the units that Melford must sell to earn operating income of $15,680 this year.

  Construct an opening balance sheet for the partnership

The partnership assumes all liabilities encumbering the contributed assets. Construct an opening balance sheet for the partnership

  What the appropriate financial statement treatment is to

What the appropriate financial statement treatment is to? You are auditing Mabuhay and Company. You are aware of a potential lost due to non-compliance

  Write down each bank balance sheet

The reserve requirement in Montopia is 10%. Freedom Bank has deposits of $14 million and keeps its reserves as low as possible.

  Calculate the value- added and the non- value added cost

The fourth employee inspects the completed subassembly and, if necessary, grinds - Calculate the value- added and the non- value added cost

  What would be the value of gross profit

If, Sales = Rs. 800,000, Markup = 25% ofcost, what would be the value of Gross profit? Which of the following is correct?

  Review problem on acceptance of low bid

Acceptance of Low Bid The Velasquez Company, a maker of a variety of metal and plastic products, is in the midst of a business downturn and is saddled.

  Indicate how the following business transactions

Indicate how the following business transactions affect the basic accounting equation.

  Company''s current performance

This assessment will require you to conduct financial statement analysis based on your financial ratio calculations as well as your observation about the company executives' ethical behaviour and the level of quality of the corporate social responsib..

  Problem related to step acquisition

In a step acquisition, which of the following statements is false? A. Obtaining control through a step acquisition is a significant re-measurement event B. The acquisition method views a step acquisition essentially the same as a single step acquisit..

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