Prepare journal entries for the issuance of the notes

Assignment Help Accounting Basics
Reference no: EM132049597

Question - At the start of the year, Triple T Company issued $6 million of 7% notes along with warrants to buy 400,000 shares of its $10 par value common stock at $18 per share. The notes mature over the next 10 years, starting one year from date of issuance, with annual maturities of $600,000. At the time, Triple T had 3,200,000 shares of common stock outstanding, and the market price was $23 per share. The company received $6,680,000 for the notes and the warrants. For Triple T, 7% was a relatively low borrowing rate. If offered alone, at this time, the notes would have been issued at a 20 to 24% discount.

Prepare journal entries for the issuance of the notes and warrants for the cash consideration received. Notes would have been issued at a 20% to 24% discount.

Reference no: EM132049597

Questions Cloud

Reflect on the cultural and social movements : Observe closely in order to address how they reflected the cultural and social movements of the 1970s decade.
Jake is 3 times as old as lacy : Jake is 3 times as old as lacy. 8 years from now the sum of there ages will be 64. How old are they now?
What is your estimated of the stock intrinsic value : The last dividint the firm recorded was $1.03. If rs is calculated at 11% what is your estimated of the stock intrinsic value?
Write the standard form equation of the parabola : Write the standard form equation of the parabola that passes through (12,24), (12,24),if the vertex at the origin and the axis of symmetry is vertical.
Prepare journal entries for the issuance of the notes : Prepare journal entries for the issuance of the notes and warrants for the cash consideration received. Notes would have been issued at a 20% to 24% discount
Prepare a journal entry for the given transactions : Prepare a journal entry for the following transactions: On August 30th, Decreases in asset accounts are recorded as credits Increases
The types of occupations which workers chose : Identify at least two ways in which the industrial economy impacted the types of occupations which workers chose.
Calculate the operating cash flows for years : Calculate the operating cash flows for years 1-4. Calculate the salvage value of the machine at the end of year 4,
Calculate diluted earnings per share and the incremental eps : Calculate diluted earnings per share for 2013 and the incremental EPS of the preferred stock and convertible bonds

Reviews

Write a Review

 

Accounting Basics Questions & Answers

  Prepare the journal entry to record the purchase

Prepare the journal entry to record the purchase of this truck.

  Discuss the banks statement indicated a balance

balance while the bank's statement indicated a balance of $23,405. Reviewing the bank's statement information

  What are the tax consequences of liquidating distribution

What are the tax consequences of the liquidating distribution to Scarlet Corporation and to Jake

  Problem 1 your firm is contemplating the purchase of a new

problem 1 your firm is contemplating the purchase of a new 720000 computer-based order entry system. the system will be

  Calculate dazes taxable income if he files single

Calculate Daze's taxable income if he files single with one personal exemption

  What is the labor efficiency variance for the month

Standard labor hours per unit of output 4.0 hours. Standard labor rate $12.3 per hour. What is the labor efficiency variance for the month

  Identify content from course that you believe will be useful

Identify the content from this course that you believe will be the most useful to you in the future. Provide at least one specific example to support your response.

  Prepare the appropriate journal entry to record lances

lance lawn services reports warranty expense by estimating the amount that eventually will be paid to satisfy

  Analyze american eagle outfitters by reviewing each category

Analyze American Eagle Outfitters by reviewing each category of ratio information presented on the previous page

  Determining receipt of the cash and notes

How will Wren Corporation be taxed on the distribution? How will Adam be taxed on his receipt of the cash and notes?

  Procter micro-computers inc requires 1200000 in financing

procter micro-computers inc. requires 1200000 in financing over the next two years. the firm can borrow the funds for

  Nilani company purchased 100 arapaho company bonds on april

nilani company purchased 100 arapaho company bonds on april 12007. the bonds pay interest semiannually on march 31 and

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd