esc ock Bonds (Face Value = $24M) and 4M shares of common stock (Par Value = $1) are issued for $44M. Bonds' fair value is $18M. Stocks' fair value cannot be determined. This transaction: REVIEW QUESTION 1/1 control Q A 2N F2 WS # 3 XI option command increases paid-in capital- excess of par by $16M increases paid-in capital-excess of par by $22M increases paid-in capital- excess of par by $26M 20 F3 E D 694 increases paid-in capital by $22M $ 4 C a F4 R F % 0 F5 V T 6 G F6Y & 7 H F7 00 8 DII FB To Do F9 O F10 CONTINUE 30% P Selected F11 F12 1

esc ock Bonds (Face Value = $24M) and 4M shares of common stock (Par Value = $1) are issued for $44M. Bonds' fair value is $18M. Stocks' fair value cannot be determined. This transaction: REVIEW QUESTION 1/1 control Q A 2N F2 WS # 3 XI option command increases paid-in capital- excess of par by $16M increases paid-in capital-excess of par by $22M increases paid-in capital- excess of par by $26M 20 F3 E D 694 increases paid-in capital by $22M $ 4 C a F4 R F % 0 F5 V T 6 G F6Y & 7 H F7 00 8 DII FB To Do F9 O F10 CONTINUE 30% P Selected F11 F12 1

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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00Ucation.com/exl/map/index.html?.con con&external_browser=0&launchUrl=https%253A%252F%252Fnewconnect.mheducation.com%2 JTFA 2021 6 Sved General Corporation purchased $938,000 of bonds with a coupon rate of 10% at face value on December 5, 2021. The market pric the bond was $984,000 on December 31, 2021, Required: Prepare the appropriate journal entry on December 31, 2021, to properly value the bonds assuming the bonds are classified as: (If m entry is required for a transaction/event, select "No journal entry required" in the first account field.) Ignore the journal entry for coupon payment and interest recognition. 1. Trading securities. 2. Securities available-for-sale. 19 3. Held-to-maturity securities. View transaction list Journal entry worksheet Record the unrealized holding gain or loss for securities available-for-sale. Note: Enter debits before credits Transaction General Joumal Debit Credit 2. MacBook Pro DII FA FS FR %23 24 & 4. 6. 8 Q R T Y F H. J K C V command ption…
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Bond Listing from Wall Street Journal Online 1 A Issuer Name CITIGROUP GENERAL ELECTRIC CAPITAL KRAFT FOODS BANK OF AMERICA ANHEUSER- BUSCH 2 Symbol C.HRY GE.HMX KFT.GX BAC.ICB BUD.ID COMCAST CORP CMCD.GC GOLDMAN SACHS GS.IAR 3 Coupon 8.500% 5.500% 5.375% 7.625% 5.375% 5.150% 5.375% GP BANK OF AMERICA BAC.IOP 4.500% BARCLAYS BANK BCS.GYR 5.000% PLC 4 Maturity May 2019 Jan 2020 Feb 2020 Jun 2019 Jan 2020 Mar 2020 Mar 2020 Apr 2019 Sept 2020 5 Rating Moody's/S&P/ Fitch A3/A/A+ Aa2/AA+/- - Baa2/BBB-/BBB - A2/A/A+ Baa2/BBB+/- - Baa1/BBB+/BBB+ A1/A/A+ A2/A/A+ Aa3/AA-/AA- 6 7 8 High Low Last Change 119.268 116.615 117.733 0.448 105.307 102.374 103.097 -0.028 9 106.081 101.999 103.411 0.687 112.847 0.283 113.172 111.839 104.693 104.061 104.526 -0.466 104.832 100.923 101.225 0.441 99.750 95.636 101.750 99.288 100.231 0.518 107.104 102.680 103.584 0.595 -0.592 96.642 Yield % 5.940 5.090 N/A 5.826 10 4.930 5.786 4.784 4.445 4.351
Subject:- finance
Alternative Financing Plans Vatican Co. is considering the following alternative financing plans: Plan 1 Plan 2 Issue 10% bonds (at face value) $6,000,000 $3,750,000 Issue preferred $2.50 stock, $25 par 4,500,000 Issue common stock, $20 par 6,000,000 3,750,000 Income tax is estimated at 40% of income. Determine the earnings per share of common stock, assuming that income before bond interest and income tax is $3,000,000. Enter answers in dollars and cents, rounding to the nearest whole cent. Plan 1 $ X Earnings per share on common stock Plan 2 X Earnings per share on common stock
1 ences The bonds of Generic Labs Inc. have a conversion premium of $60. Their conversion price is $25. The common stock price is $21.00. What is the price of the convertible bond? (Do not round intermediate calculations and round your answer to 2 decimal places.) Mc Graw Hill Convertible bond price Prev 2 of 10 MacBook Air Next >
ASsignmentiMain.do?invoker=& takeAssignmentSessionLocator%3D&inprogress%-false rk eBook Calculator Print Item Compute Bond Proceeds, Amortizing Premium by Interest Method, and Interest Expense Ware Co. produces and sells motorcycle parts. On the first day of its fiscal year, Ware Co. issued $90,000,000 of five-year, 12% bonds at a market (effective) interest rate of 10%, with interest payable semiannually. Compute the following: a. The amount of cash proceeds from the sale of the bonds. Use the tables of present values in Exhibit 8 and Exhibit 10. Round to the nearest dollar. b. The amount of premium to be amortized for the first semiannual interest payment period, using the interest method. Round to the nearest dollar. C. The amount of premium to be amortized for the second semiannual interest payment period, using the interest method. Round to the nearest dollar. d. The amount of the bond interest expense for the first year. Round to the nearest dollar. SHEET.A... SHEET KSHEET.A...…
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Alternative Financing Plans Frey Co. is considering the following alternative financing plans: Plan 1 $1,760,000 Issue 10% bonds (at face value) Issue preferred $1 stock, $10 par Issue common stock, $5 par Income tax is estimated at 40% of income. Determine the earnings per share on common stock, assuming that income before bond interest and income tax is $528,000. Enter answers in dollars and cents, rounding to two decimal places. Plan 1 2.4 X Earnings per share on common stock 4.2 X Earnings per share on common stock Plan 2 $ S Plan 2 1,760,000 $880,000 1,460,000 1,180,000
Problem 12-3 (Algo) Securities available-for-sale; bond investment; effective interest; financial statement effects [LO12-1, 12-4] Fuzzy Monkey Technologies, Incorporated purchased as a long-term investment $60 million of 6% bonds, dated January 1, on Janua 1, 2024. Management intends to have the investment available for sale when circumstances warrant. For bonds of similar risk and maturity the market yield was 8%. The price paid for the bonds was $46 million. Interest is received semiannually on June 30 and December 31. Due to changing market conditions, the fair value of the bonds at December 31, 2024, was $50 million. Required: 1. to 3. Prepare the relevant journal entries on the respective dates (record the interest at the effective rate). 4-6. At what amount will Fuzzy Monkey report its investment in the December 31, 2024, balance sheet? 4-b. Prepare the entry necessary to achieve this reporting objective. 5. How would Fuzzy Monkey's 2024 statement of cash flows be affected by…