Scenario How does Apple’s issuance of bonds and buyback of its own stock impact its accounting equation? In May 2017, Apple (NASDAQ: AAPL) filed a prospectus with the SEC, indicating that it would be issuing another $7 billion in bonds during 2017. (Apple issued $10 billion in bonds in February 2017 in the US and $1 billion in Taiwan.) With the bond proceeds, Apple will be buying back its own stock. Apple has also indicated that there will be a 10.5 percent dividend increase for its shareholders Questions Part 1 What journal entry would Apple make when it issues $7 billion in bonds? How are assets, liabilities, and equity impacted by the bond issuance? Name the account(s) impacted and whether an increase of decrease.
Scenario How does Apple’s issuance of bonds and buyback of its own stock impact its accounting equation? In May 2017, Apple (NASDAQ: AAPL) filed a prospectus with the SEC, indicating that it would be issuing another $7 billion in bonds during 2017. (Apple issued $10 billion in bonds in February 2017 in the US and $1 billion in Taiwan.) With the bond proceeds, Apple will be buying back its own stock. Apple has also indicated that there will be a 10.5 percent dividend increase for its shareholders Questions Part 1 What journal entry would Apple make when it issues $7 billion in bonds? How are assets, liabilities, and equity impacted by the bond issuance? Name the account(s) impacted and whether an increase of decrease.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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How does Apple’s issuance of bonds and buyback of its own stock impact its
In May 2017, Apple (NASDAQ: AAPL) filed a prospectus with the SEC, indicating that it would be issuing another $7 billion in bonds during 2017. (Apple issued $10 billion in bonds in February 2017 in the US and $1 billion in Taiwan.)
With the bond proceeds, Apple will be buying back its own stock. Apple has also indicated that there will be a 10.5 percent dividend increase for its shareholders
Questions Part 1
- What
journal entry would Apple make when it issues $7 billion in bonds? - How are assets, liabilities, and equity impacted by the bond issuance?
- Name the account(s) impacted and whether an increase of decrease.
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