Reference no: EM132960322
On January 1, 2020, Whiskey Corp. issued 1,000 of its January 1, 2015, 12%, 10 year, P1,000 face value bonds with detachable stock warrants at P1,220,000. Each bond, which pays interests every January 1 carried 5 detachable warrants which entitle the holder to acquire one share of Whiskey Corp.'s P50 par value ordinary shares for every warrant at a specified option price of P55 per share. Immediately after the issuance the prevailing market rate of interest is at 10% and the market value of the warrants was P30.
- The present value of P1 at 10% for 5 periods without annuity is at 0.62092
- The present value of P1 at 10% for 10 periods without annuity is at 0.38554
- The present value of P1 at 10% for 5 periods with ordinary annuity is at 3.79079
- The present value of P1 at 10% for 10 periods with ordinary annuity is at 6.14457
1/1/20 1,075,816
1/1/21 120,000 107,582 12,418 1,063,397
1/1/22 120,000 106,340 13,660 1,049,737
Problem 1. What is the equity component of the compound instrument?
Problem 2. What is the balance of the bonds payable as of December 31, 2021?
Problem 3. How much is the interest expense in 2021?
Problem 4. What is the credit to share premium assuming that 80% of the warrants issued with bonds were exercised in 2022
Create a professional document in microsoft word
: Identify the editing tools you can use to make your document error free. Choose one of the tools that you would find most useful when correcting errors in your
|
Development of the behavior management plan
: Describe how to consider and respect family expectations and their cultural values in the development of the behavior management plan.
|
Make a three-column comparative income statement
: Prepare a three-column comparative income statement that reports the Annual income without the special order and Annual income from the special order.
|
Analise the importance of employee relations
: Analise the importance of employee relations in respect to influencing HRM decision making in Hampton by Hilton London Park Royal. Identify the key elements of
|
What is the equity component of the compound instrument
: Whiskey Corp. issued 1,000 of its January 1, 2015,What is the credit to share premium assuming that 80% of the warrants issued with bonds were exercised in 2022
|
How much is gain to be recognized in the income statement
: When the prevailing quoted value of bonds were at 96, how much is the gain or loss to be recognized in the income statement for the retirement?
|
What is the gain or loss on the early retirement of the bond
: Assuming all the bonds were reacquired on April 30, 2021, for P2,100,000, what is the gain or loss on the early retirement of the bonds.
|
Make budgeted balance sheet as of march for stillwater video
: Prepare a budgeted balance sheet as of March 31.? Stillwater Video Company, Inc. produces and markets two popular video games.
|
What is the present value of the project revenues
: If the current value of the installments is equal to 3.5 for 8 years and 6.7 for 16 years, what is the present value of the project revenues
|