Hoffman Corporation issued $60 million of 5%, 20-year bonds at 102. Each of the 60,000 bonds was issued with 10 detachable stock warrants, each of which entitled the bondholder to purchase, for $20, one share of $1 par common stock. At the time of sale, the market value of the common stock was $25 per share and the market value of each warrant was $5. Prepare the journal entry to record the issuance of the bonds. Note: Enter your answers in millions rounded to 1 decimal place (i.e., 5,500,000 should be entered as 5.5). If no entry is required for a transaction/event, select "No journal entry required" in the first account field. View transaction list Journal entry worksheet 1 Record the issuance of the bonds. Note: Enter debits before credits. Event 1 Record entry General Journal Clear entry A Debit Credit View general journal >

Q: Bnmm

A: Accounting system refers to the set of the processes of accounting which is integrated with the…

Q: THE SMITH COMPANY Using the business transactions below, complete T-accounts for the Smith Company.…

A: T Accounts    1. Cash Account Particular Debit Particular Credit         To capital A/c…

Q: Concord Corporation's charter authorized issuance of 96,000 shares of $10 par value common stock and…

A: The company issues either common shares or preferred shares. When the company issues these shares…

Q: Question 25

A: A theory that helps to compute the present or future value of the cash flows is term as the TVM…

Q: Question 4 a/ Which three term structure facts should a good theory explain?

A: A good theory of the term structure of interest rates should explain the following three facts:

Q: Question 8

A: When net credit sales is divided with average accounts receivable it results in receivable turnover…

Q: Explanation 1031 like-kind exchange

A:

Q: Define regulation D

A: The Accounting Standards are specific set of principles and procedures set by the authorized bodies…

Q: Complete requirement 1

A: Ratio analysis is a method of measuring the financial position of the organization with different…

Q: two questions

A: Prepare an income statement.

Q: How do I do number 2 ?

A: Adjusting entries: Adjusting entries are those entries that are recorded at the end of the year, to…

Q: An oil company executive is considering investing $10.1 million in one or both of two wells: well 1…

A: NPV It is the present cash inflows less the present values of cash out flows. If the cash inflows…

Q: Answer Question 4

A: a. Prepare a bank reconciliation of Graser company at December 31, 2019 as shown below:

Q: can you answer d

A: Indifference curve is graph showing the different combination of risk and return for the given level…

Capital Gain

Any capital asset when sold can give the seller a higher or lower price from its purchase price leading to a capital gain or capital loss. The time period of holding an asset is decided based on if it is a long term or short-term capital gain. On that basis, the rate of taxation is decided if it is 20%, 15% or according to the tax brackets. The rate of taxation differs in the case of equity or debt, whether long or short term. The capital gain can be adjusted from capital loss to arrive at a net capital gain. The amount of gains and the exemption has to be reported in the tax return filed in the financial year in which the asset was transferred. The tax return can be filed quarterly, monthly, semi-annually or annually.