Kelton Co. which produces and sells skiing equipment is financed as follows:   Bonds Payable 8% (issued at face value) 20,000,000 Preferred $2 Stock $10 Par 20,000,000 Common Stock $25 Par 20,000,000 Income tax is estimated at 40% of income.   Determine the earnings per share of common stock assuming that the income before bond interest and income tax is:   a. $10,000,000   b. $12,000,000   c. $14,000,000

Q: ddie Industries issues $950,000 of 8% bonds at 103. The amount of cash received from the sale is…

A: In the given question, Bonds having face value of $ 950,000 are issued at 103. It implies that…

Q: Clare co. issued $6 million of 12% bonds on 12/31/year 1, due on 12/31/year 6, with interest payable…

A: As per our policy we have answer only for 3 subparts.Bond Issuing PriceFace Value = $6 millionYield…

Q: A company has outstanding $660,000 of 8% bonds on which the interest is payable annually on 31…

A: cost of debt formula: cost of debt =coupon+par-priceyears to maturitypar+price2

Q: If $1,000,000 of 8% bonds are issued at 98 1/2, the amount of cash received from the sale is

A: Cash received from the sale of bonds = Face value of bonds x rate at which bonds are issued

Q: A company received cash proceeds of $206,948 on a bond issue with a par value of $200,000. The…

A: Cash proceeds = $206,948 Par value = $200,000 Premium = 206,948-200,000 = $6,948

Q: Determine the annual before-tax interest cost for each company in dollars. b. Determine the annual…

A: Formula: Annual before-tax interest cost = Face value of bonds payable x Interest rate

Q: A $200,000, 8% bond issue was sold at face value and later redeemed at 104% of face value. The…

A: FINANCING ACTIVITIES Transactions involving the purchase and sale of long-term assets, investing…

Q: Holiday Brands issued $31 million of 10%, 30-year bonds for $28.5 million. What is the amount of…

A: Bonds Bonds are a kind of interest bearing notes payable, usually issued by companies, universities…

Q: On October 1 a company sells a 3-year, $2,500,000 bond with an 8% stated interest rate. Interest is…

A: Given, Face value = $2,500,000 Coupon rate = 8% Issue at 89.35%

Q: If $522,000 of 8% bonds are issued at 94, the amount of cash received from the sale is:

A: Bonds price is indicated as a percentage of par value and par value is assumed at 100. So price…

Q: WACC-Book weights and market weights Webster Company has compiled the information shown in the…

A: WEIGHTED AVERAGE COST OF CAPITAL is the average cost to a company of capital. WACC is calculated by…

Q: Ware Co. produces and sells motorcycle parts. On the first day of its fiscal year, Ware Co. issued…

A: Bonds :— It is one of the type of securities that pays fixed periodic interest and face value amount…

Q: Lidl Company issues 89%6, 10-year.bonds with a par value of BD100,000 that pay interest…

A: Debentures are the fixed income securities issued by a business to raise capital in form of debt…

Q: If $1,093,000 of 8% bonds are issued at 102 3/4, the amount of cash received from the sale is

A: Given that  $1093000 of 8% Bonds issued at 102 3/4

Q: Holiday Brands issued $20 million of 5%, 30-year bonds for $17.5 million. What is the amount of…

A: Given ,Face amount  = $20 million = $20,000,000Annual rate = 5% fraction of year (semiannually ) =

Q: If $1,140,000 of 12% bonds are issued at 102 3/4, the amount of cash received from the sale is…

A:

Q: Holiday Brands issued $32 million of 5%, 30-year bonds for $29.5 million. What is the amount of…

A: In this problem, we will calculate the amount of interest to be paid semi-annually.

Q: If $699,000 of 7% bonds are issued at 94, the amount of cash received from the sale is

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Q: Ken company which was dealing with high level computer chips issued a 10 year P1,810,000 FV, 6%…

A: Diluted earnings per share used to assess an entity's profitability after taking in to consideration…

Q: A company issues $50,000 of 4% bonds, due in 5 years, with interest payable semiannually. Calculate…

A:

Q: Investco issued $30,000 of 6.25% bonds on January 1 at a discount of $2,107. Interest expense…

A: The book value of the bond is calculated by subtracting the unamortized discount from the face value…

Q: 15. ABC Company Issues $100,000 of 30 year 5% bonds at 102. What entry is used to record this…

A: “Since you have asked multiple question, we will solve the first question for you. If you want any…

Q: Vaughn Co. purchased 61,7% Ivanhoe Company bonds for $61000 cash. Interest is payable annually on…

A: The original purchase was for 61 bonds at $61,000, so each bond was purchased for $1,000 ($61,000 /…

Q: A corporation issues a bond with a par value of $9,000 in one year.  Assume that the bond is sold…

A: Interest Amount= Current Value x Rate of Interest x Period in Years Interest Amount = Maturity Value…

Q: If $4,000,000 of 12% bonds are issued at 103 1/4, the amount of cash received from the sale is:

A: Number of bonds=Par value of bondsPer share value=$4,000,000$100=40,000

Q: 1. ABC, Inc. issued P1,000,000, 10% bonds to yield 8%. bond issuance costs were P10,000. How should…

A:

Q: Entity A had the following instruments outstanding all throughout 20x1:12% convertible bonds payable…

A: Earning per share The purpose of calculating earning per share in the business entity which can know…

Q: A Corporation sold an issue of 15-year bonds, having a total face value of ₱12,000,000 for…

A: A sinking fund is a means of repayment of funds raised through a bond issue by periodic payment to a…

Q: Smith Corporation issues $1,800,000, 10-year, 9% bonds payable at a price of 98. The journal entry…

A: The bonds payable are reported as the long-term liabilities. The bonds are issued to raise the money…

Q: A company received cash proceeds of $426,525 on a bond issue with a par value of $400,000. The…

A: Bond is a financial instrument issued by a company in order to raise funds. In exchange for funds,…

Q: A company issues $50,000 of 4% bonds, due in 5 years, with interest payable semiannually. Assuming a…

A:

Q: On April 1, 20x1, Ronald Ryan Co. acquired 12%, P4,000,000 bonds dated January 1, 20x1 at 98…

A: Since you have asked multiple questions, we will solve the first question for you. If you want any…

Q: If $1,051,000 of 12% bonds are issued at 102 1/2, The amount of cash received from the sale is:

A: Amount of Cash Received = Face value of Bond*Bond Quote/100

Q: If $1,153,000 of 9% bonds are issued at 102 1/2, The amount of cash received from the sale is…

A: Bonds are considered a cheaper source of finance. It is because the interest on bonds is a…

Q: A bond issue of $50,000 with a carrying value of $49,000 is converted into $10 par value common…

A: Book Value method is a method of recording the conversion of the bonds into common stocks. Under the…

Q: Company's 5-year bonds are selling at P820. The bonds face amount is P1,000 and pays an annual…

A: Bonds are long term source of finance for the company and very cheap source of finance because after…

Q: A Corporation sold an issue of 15-year bonds, having a total face value of P12,000,000 for…

A: Sinking Fund - A Sinking fund is a type of fund that is created and set up purposely for repaying…

Q: 10. Float Corporation had the following transactions pertaining to debt investments. Jan. 1…

A: The journal entries are prepared to keep the record of day to day transactions of the business.

Q: Randolph Company issued $1,000,000 of 6.5%, 8-year bonds dated June 1, 20X3, with semiannual…

A: 1. Bond is issued at premium when issue price of bond is higher than par/face value of bond. As per…

Q: Holiday Brands issued $24 million of 9%, 30-year bonds for $21.5 million. What is the amount of…

A: Bonds are obligation securities issued by governments, districts, or enterprises to raise capital.…