Prior inc has decided to raise additional capital by

Assignment Help Accounting Basics
Reference no: EM13597906

Prior, Inc. has decided to raise additional capital by issuing $175,000 face value of bonds with a coupon rate of 10%. In discussions with investment bankers, it was determined that to help the sale of bonds, detachable stock warrants should be issued at a rate of one warrant for each $100 bond sold. The value of the bonds without the warrants is considered to be $136,000, and the value of the warrants in the market is $24,000. The bonds sold in the market at issuance for $150,000.

a) What entry should be made at the time of the issuance of the bonds and warrants?

b) If the warrants were nondetachable, would the entries be different? Discuss.

Reference no: EM13597906

Questions Cloud

Joe amp sam co reports net income of 26910 interest : joe amp sam co. reports net income of 26910. interest allowances are joe 6500 and sam 6220 salary allowances are joe
Aerotoy company makes toy airplanes one plane is an : aerotoy company makes toy airplanes. one plane is an excellent replica of a 737 it sells for 5. vacation airlines wants
Capital balances in midway co are messer 43780 isch 27110 : capital balances in midway co. are messer 43780 isch 27110 and denny 13630. messer and isch each agree to pay denny
Jennifer devine and stanley farrin decide to organize the : jennifer devine and stanley farrin decide to organize the all-star partnership. devine invests 14150 cash and farrin
Prior inc has decided to raise additional capital by : prior inc. has decided to raise additional capital by issuing 175000 face value of bonds with a coupon rate of 10. in
In january gross earnings in vega company totaled 71100 all : in january gross earnings in vega company totaled 71100. all earnings are subject to 8 fica taxes 5.4 state
Cindy neuers regular hourly wage rate is 16 and she : cindy neuers regular hourly wage rate is 16 and she receives an hourly rate of 23 for work in excess of 40 hours.
What is the amount of income tax that the company has paid : the following journal entry summarizes for the current year the income tax expense of wilsons software warehouse of the
The accountant at cedric company has determined that income : the accountant at cedric company has determined that income before income taxes amounted to 7000 using the fifo costing

Reviews

Write a Review

Accounting Basics Questions & Answers

  Burgoon uses an economic order quantity model and has

burgoon uses an economic order quantity model and has determined an optimal order size of 500 units. annual demand is

  Assume sparkle co expects to sell 150 units next month the

assume sparkle co. expects to sell 150 units next month. the unit sales price is 100 unit variable cost is 35 and the

  Describe three issuesproblems that a company could

describe three issuesproblems that a company could encounter when trying to determine the actual cost of a good or

  On february 28 2014 the balances of the accounts appearing

on february 28 2014 the balances of the accounts appearing in the ledger of foldaway furnishings company a furniture

  Major league bat company manufactures baseball bats in

major league bat company manufactures baseball bats. in addition to its goods in process inventories the company

  Records of goods inventories

Rossiter Company failed to record a credit sale at the end of the year, although the reduction in finished goods inventories was correctly recorded when the goods were shipped to the customer. Which one of the following statements is correct?

  The company performs under a variety of contracts some of

labco is a large construction contracting firm that serves a variety of industrial customers that purchase machinery

  Marick inc has an unfunded postretirement health care

marick inc has an unfunded postretirement health care benefit plan. life insurance and medical benefits are provided to

  Ehrmann data systems is considering a project that has the

ehrmann data systems is considering a project that has the following cash flow and wacc data. what is the projects

  The bonds are unsecured but registered to the name of the

cactus construction sells 1000000 of 8 bonds on january 1 of the current year. the bonds are unsecured but registered

  After confirming that the asset qualifies for interest

a your company is constructing a factory building for its own use and takes out a 2 million loan 10 interest rate from

  Cindy houston has a 25000 debt that she wishes to repay 5

1. what is the amount of the payments that ned winslow must make at the end of each of 8 years to accumulate a fund of

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