Reference no: EM131129809
Jim Thome has prepared the following list of statements about bonds.
1. Bonds are a form of interest-bearing notes payable.
2. When seeking long-term financing, an advantage of issuing bonds over issuing common stock is that stockholder control is not affected.
3. When seeking long-term financing, an advantage of issuing common stock over issuing bonds is that tax savings result.
4. Secured bonds have specific assets of the issuer pledged as collateral for the bonds.
5. Secured bonds are also known as debenture bonds.
6. Bonds that mature in installments are called term bonds.
7. A conversion feature may be added to bonds to make them more attractive to bond buyers.
8. The rate used to determine the amount of cash interest the borrower pays is called the stated rate.
9. Bond prices are usually quoted as a percentage of the face value of the bond.
10. The present value of a bond is the value at which it should sell in the marketplace.
Instructions
Identify each statement as true or false. If false, indicate how to correct the statement. \
Prepare journal entries to record the following events
: On January 1, Flory Company issued $300,000, 8%, 5-year bonds at face value. Interest is payable semiannually on July 1 and January 1.
|
Interest is payable semiannually on july 1 and january 1
: The payment of interest on July 1, assuming that interest was not accrued on June 30.
|
Determine the effect on net income and earnings per share
: Issue 60,000 shares of common stock at $45 per share. (Cash dividends have not been paid nor is the payment of any contemplated).
|
Find quantity of each chocolate bar you should manufacture
: Find the quantity of each chocolate bar you should manufacture to maximize your daily profit. Write the inequalities to describe each objective and constraint.
|
Secured bonds have specific assets of the issuer pledged
: When seeking long-term financing, an advantage of issuing common stock over issuing bonds is that tax savings result.
|
The human rights crises in iraq and syria
: make a position paper - The topics are -THE HUMAN RIGHTS CRISES IN IRAQ AND SYRIA- THE IMPACT OF TERRORISM AND EXTREMIST THINKING ON THE RIGHTS OF WOMEN IN MIDDLE EAST
|
Prepare the entry to record the lease
: James Morrison Corporation leases new equipment on December 31, 2010. The lease transfers ownership of the equipment to James Morrison at the end of the lease.
|
Prepare the entries to record the mortgage loan
: Nitro-Sort Corporation issues a $350,000, 6%, 15-year mortgage note to obtain needed financing for a new lab.
|
Why a barrel of oil can be used only once
: Explain why a barrel of oil can be used only once as a fuel source, or in other words, - why can we not recycle high-quality energy resources.
|