When the cash proceeds from a bond issued with detachable stock purchase warrants exceed the sum of the par value of the bonds and the fair value of the warrants, the excess should be credited to:a. Additional Paid-in Capitalb. Retained Earningsc. Premium on Bonds Payabled. Detachable Stock Warrants Outstanding

Q: Under the incremental method the proceeds from the sale of debt with detachable stock warrants…

A: when the detachable stock warrant are attached to the debt the proceed from sales should be…

Q: Bonds that pay no interest unless the issuing company is profitable are called Select one: O a.…

A: Wrong answer    B) Collateral trust bond: Collateral means additional security. Thus in collateral…

Q: Fixed-income securities consist of debt instruments and preferred stock. Bonds are debt secur…

A: The percentage of bonds issued by a certain class of issuers, such as governments or businesses,…

Q: The journal entry to record the issuance of bonds at a premium consists of a debit to Cash, a debit…

A: Issue of bonds is one of source of finance being used in business. Under this, long term or short…

Q: Why would a company wish to reduce its bond indebtedness before its bonds reach maturity? Indicate…

A:

Q: Unrealized holding gains and losses on debt securities classified as available for sale would have…

A: Other Comprehensive Income refers to items of income and expenses that are not recognized as a part…

Q: debt instrument

A: A Bond is considered as DEBT  INSTRUMENT

Q: Rank bonds, common stock, and preferred stock with regard to two factors the possibility of a…

A: Common stock is the stock which does not have preferential right of dividend and which are repaid by…

Q: When a company redeems bonds at a premium to carrying value, that activity is usually classified as:…

A: The company issued the bonds to raise funds in the company so that that funds can be utilized in the…

Q: Debt securities are instruments that provide the holder a promise to pay the instrument's face value…

A: Debt securities do function as described:Promise to repay face value: When you buy a debt security…

Q: The realized gain (loss) on sale of debt investments with an objective of collecting contractual…

A: Realized Gain: When an investment is sold for a greater price than it was originally acquired, this…

Q: 1, The establishment of a bond sinking fund is required at all times to settle bond liability.  A.…

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

Q: Bonds that permit the bondholder to exchange the bonds into shares of common stock at a fixed price…

A: 1) Callable Bond is a derivative which gives the issuer the right to redeem the bond before bond's…

Q: In case of payment of convertible bonds, the balance of Share Premium - Conversion Privilege account…

A: A bond is a fixed pay instrument issued to represents to an advance made by a financial specialist…

Q: Given that a bond's carrying value is $185,000 and the fair value is $183,000, what is the journal…

A: Bonds are priced by discounting future cash flows. Future cash flows include coupons and par value…

Q: GAAP requires investments in bonds classified as trading securities to be reported at their:

A:

Q: payable is     Historical Maturity value Discounted cash-flow valuation at current effective rates…

A: The bond payable is considered to be liability for the firm and cooperations because they involve…

Q: Bonds which permit the bondholder to convert the bonds into shares of stock are called: Select one:…

A: AS THE NAME SUGGESTS , THE CONVERTIBLE BONDS ALLOW THE OWNER THE OPTION TO CONVERT BONDS INTO A…

Q: Interest revenue on bonds is reported   Question 24 options:   as part of other income   as part of…

A: The bonds are the financial instruments for the business that are issued to raise money from the…

Q: When a company exercises its call provision on bonds, the company pays the book value of the bonds…

A: Call provision on the bond is the option held by the issuer for redeeming back the bonds if in case…

Q: 1. Investments in debt and equity securities that are held for current resale by banks and…

A: Banks and stock brokerage firms normally deals in purchase and sale of securities. This purchase and…

Q: The document that shows a bondholders' purchase of bonds, the par value of the bonds, stated…

A: The correct answer is: (D) Bond certificate  The receipt of purchase would not have information…

Q: Bonds which are collateralized by specific assets in the event the borrowing company defaults on…

A: Bonds are a form of liability for the business. These can be issued for short term or long term.…

Q: Which of the following is not considered as a cash equivalent? O A three-year treasury notes…

A: Cash equivalents generally includes Liquid Cash, bank accounts and marketable securities, with…

Q: 4. Investments in debt securities include all of the following, except for a. U.S. treasury…

A: Investments in debt securities: This is the security in which the debt instrument would be either…

Q: The price of a debt instrument is quoted as percentage of its a) face or par value. b) fair market…

A: A debt instrument is a financial contract that enables one party, typically the issuer, to borrow…

Q: Investments in debt securities are generally recorded at O cost including accrued interest. e…

A: Debt securities are financial instruments that represent a loan made by an investor to an issuer,…

Q: At what amount should trading, available-for-sale, andheld-to-maturity debt securities be reported…

A:

Q: O c. callable bom O d. debenture E

A: Debenture: A debenture is a written document or certificate acknowledging borrowing by the company.…

Q: 2) Debt securities which are classified as held-to-maturity securities are valued at amortized…

A: Securities with maturities over one year are stated as long-term assets and appear on the balance…

Q: 6. This is a financial security that evidences your right to be paid with interest and principal…

A: A financial security is a tradable financial asset. Bonds, preference and common shares, derivatives…

Q: Select the term that best fits each of the following definitions and descriptions.

A: Bonds are the liability of the company which they have to pay after the expiry of the bond’s…

Q: unamortized premium

A: Any unamortized premium should be reported on the balance sheet of the issuing corporation as Answer…

Q: The coupon rate is identified on the bond indenture and determines the amount of cash payment for…

A: The answer along with the explanation is provided below.

Q: Which of the following would NOT be included in the journal entry to show the conversion of bonds…

A: Journal entry: A journal entry is a documentation of a business's financial activities kept in its…

Q: When treasury shares are reissued as dividends, what amount shall be charged to accumulated profits?

A: Treasury Stock also known as treasury shares are the outstanding equity shares of a company…

Q: Marketable securities are a. long term in nature b. are examples of bonds c. traded in the money…

A: Marketable securities are easily and affordably convertible into cash. They are highly liquid…

Q: When the conversion of bonds payable to common stock is recorded under the market value method and…

A: Journal entry will be - bonds payable debit…

Q: In an equity swap where a liability is settled through the issuance of equity securities A.no gain…

A: According to IFRS the financial liability is renegotiated and the equity is issued to a creditor in…

Q: Investments in debt securities are classified into the following categories according to…

A: Investment in debt securities: Purchase of debt securities of another corporation.

Q: Debt securities include Oa. common stock Ob. preferred stock O c. notes and bonds O d. All of these…

A: Debt securities are the financial instruments use ensures the promised interest revenue to the…

Characteristics of Bonds