TDC Company issued a 3-year,12%, 2,000 of P 1,000 face value bonds with warrants at 98 on January 1, 2020. The nominal rate is payable annually on December 31. When the bonds are issued, the prevailing market rate of interest for similar bonds without warrants is 15% per annum. Each bond is accompanied by a warrant that permits the bondholder to purchase 20 shares of common stock, par P 30, at P45 per share. How much is the amount allocated to warrants to be recognized by ABC Company? (For present value factors, do not round off)

Q: Tano Company issues bonds with a par value of $91,000 on January 1, 2019. The bonds’ annual contract…

A: Bond Issued at Par:- When the company issued bonds at the face value of the security is known as the…

Q: Pretzelmania, Inc., issues 7%, 10-year bonds with a face amount of $70,000 for $70,000 on January 1,…

A: Interest payment on June 30, 2021 = Face value of bonds x rate of interest x 6/12 = $70,000 x 7% x…

Q: On March 1, 2022, Erik Company issued 10,000 of its P1,000 face value bonds at 95 plus accrued…

A: A bond is just like the bank loan. A bond holder will get the principal amount at the maturity of…

Q: On January 1, 2022, Broncos Universal issued 12% bonds dated January 1, 2022, with a face amount of…

A: Bond Price :— It is sum of present value of periodic interest payment and face value amount.    If…

Q: On August 31, 2020, Cebu Pacific Co. issued a 3,000, P1,000, 10%, 5 year bonds at 110 including…

A: Bonds are the financial instruments used by the company to raise money from the investor which…

Q: On December 31, 2019, Armada Company issued 5,000,000 face amount, 5 year bonds at 109.  Each 1,000…

A: Share warrant: Share Warrant is a document which entitles  bearer of this document for  the shares…

Q: Pretzelmania, Inc., issues 7%, 15-year bonds with a face amount of $70,000 for $63,948 on January 1,…

A: Bonds issued at discount: When bonds are issued at price less than the face value then they are…

Q: On July 1, 2022, Mercurial Company issued at 98 plus accrued interest 2,500 of its 11%, P1,000 face…

A: Solution : Given Face value of bond         =P1000 Issue price                        =98%…

Q: Pretzelmania, Inc., issues 5%, 10-year bonds with a face amount of $59,000 for $59,000 on January 1,…

A: Bonds payable are one of the sources of finance and is shown as liability. If the interest rate is…

Q: Claremont Inc. issued a $400,000 bond on January 1, 2020. The bond had a five-year life and an 8%…

A: A bond is an instrument of an indebtedness to the holders of bond issuer in finance. The most…

Q: Pretzelmania, Inc., issues 7%, 15-year bonds with a face amount of $70,000 for $64,008 on January 1,…

A: 1.When bonds are issued at a price less than the face value, they are said to be issued at discount.…

Q: Kingbird Ltd. issued a $778,000, 10-year bond dated January 1, 2023. The bond was sold to yield 12%…

A: Issue price of bonds would be the present value of the interest annuity & maturity amount at…

Q: On July 1, 2022, Free Compnay issued for $438,000, 500 of its 8%, $1000 bonds. The market rate when…

A: The bonds are the financial instruments that are used to raise money from the market or investors.…

Q: per bond, at 105. Eá An entity issued 5,000 10-year bonds, face amount pond is accompanied by one…

A: Solution Given Issue price 105 Coupon rate on bond 10% Market rate of similar bond…

Q: On December 31, 2021, This Company issued P5,000,000 face value, 5-year bonds at 109. Each P1,000…

A: Given data, Face value of bonds=P5,000,000 Interest rate on bonds =11% prevailing market rate of…

Q: P642,007.30 in b

A: Introduction Present value of bond:-

Q: Claremont Inc. issued a $400,000 bond on January 1, 2020. The bond had a five-year life and an 8%…

A: “Since you have posted a question with multiple sub-parts, we will solve first three subparts for…

Q: Kingbird Ltd. issued a $778,000, 10-year bond dated January 1, 2023. The bond was sold to yield 12%…

A: An investment's real or actual interest rate, accounting for compounding over a certain time period,…

Q: Pretzelmania, Inc., issues 7%, 15-year bonds with a face amount of $67,000 for $73,507 on January 1,…

A: Given that, rate of interest on bonds = 7% term of the bond = 15years Face value of bonds  $67000…

Q: On January 1, 2023, ACT Company issues 1,000 of its 12%, P 1,000 face value bonds at 112, a price…

A: The underwriting fees of 20,000, and the printing cost of bond certificates of P50,000 here are the…

Q: V Company issued a 5-year, P5,000,000 face value bonds at 109 on December 31, 2020. Each P5,000 bond…

A: Share Premium = P5,620,000   Calculation:   Particulars Amount Amount Cash (5,000,000 / 1,000…

Q: bonds were issued, the prevailing market interest rate for similar debt without the conversion…

A: Financial statements refer to the final documents prepared at the end of the year by the business…

Q: Pretzelmania, Inc., issues 7%, 15-year bonds with a face amount of $70,000 for $76,799 on January 1,…

A:

Q: On January 1, 2023, Systems Corporation issues $60,000 of 7%, 15-year bonds, with interest payable…

A: The question is based on the concept of Financial Accounting. Bonds comes under the definition of…

Q: On July 1, 2019, Fewa Company issued P4,000,000 of 16% bonds to yield 14%. Interest is payable…

A: Solution : Given: Face value        =4000000 Coupon rate    =16% Interest payable           =semi…

Q: Pretzelmania, Inc., issues 7%, 10-year bonds with a face amount of $70,000 for $70,000 on January 1,…

A: Bond: It refers to a financial instrument that reflects an acknowledgement of debt and states a…

Q: Metlock Ltd. issued a $791,000, 10-year bond dated January 1, 2023. The bond was sold to yield 12%…

A: The proceeds from the bond issue are computed by adding the present value of interest and maturity…

Q: ABC Company issued a 3-year,12%, 2,000 of P 1,000 face value bonds with warrants at 98 on January 1,…

A: Present value of the bonds = Present value of principal + Present value of interest payments = face…

Q: ABC Co. issued 1.000 convertible bonds at the beginning of 2019. The bonds have a four-year term…

A: Share Capital-Ordinary will be credited by Rp250,000, as there is an increase in share capital worth…

Q: On June 30, 2018, Singleton Computers issued 6% stated rate bonds with a face amount of $200…

A: Bonds payable are one of the sources of finance and are shown as liability. If the interest rate is…

Q: On January 1, 2020, XYZ Co. issued a bond with a $400,000 par (face) value. The bond is a 5-year…

A: BOND Bond is a Financial Securities which is Generally Issued by the Corporation's, Government…

Q: Tano Company issues bonds with a par value of $180,000 on January 1, 2021. The bonds' annual…

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

Q: Waterway Ltd. issued a $1,062,000, 10-year bond dated January 1, 2023. The bond was sold to yield…

A: Bonds can offer a reduced degree of risk compared to other investments and offer investors a fairly…

Q: Wildhorse Ltd. issued a $1,159,000, 10-year bond dated January 1, 2023. The bond was sold to yield…

A: Bonds: Compared to other investments, bonds can offer a lower level of risk and a somewhat steady…