Pryor corporation had two issues of securities outstanding

Reference no: EM13598735

Pryor Corporation had two issues of securities outstanding; common stock and an 8% convertible bond issue in the face amount of $16,000,000. Interest payments dates of the bond issue are June 30th and December 31st. The conversion clause in the bond indenture entitles the bondholders to receive forty shares of $20 par value common stock in exchange for each $1000 bond. On June 30, 1998, the holders of $2,400,000 fave value bonds exercised the conversion privilege. The market price of the bonds on that date was $1100 per bond and the market price of the common stock was $35. The total unamortized bond discount at that date of conversion was $1000,000. In applying the book value method, what amount should Pryor Corporation credit to the account "Paid in Capital in Excess of Par," as a result of this conversion?

Reference no: EM13598735

Questions Cloud

Larson company issued 500000 of 8 5-year bonds at 106 : larson company issued 500000 of 8 5-year bonds at 106. assuming straight-line amortization and annual interest payments

Wolford company borrowed 750000 from us bank on january 1 : wolford company borrowed 750000 from u.s. bank on january 1 2009 in order to expand its mining capabilities. the

Compute its operating and cash conversion cycle in each : given robinsons 2010 and 2011 financial information presented in problems 2 and 4a. compute its operating and cash

An insurance firm writes policies covering cruise vacation : an insurance firm writes policies covering cruise vacation. the probability that someone will file a claim on their

Pryor corporation had two issues of securities outstanding : pryor corporation had two issues of securities outstanding common stock and an 8 convertible bond issue in the face

Williams companys direct labor cost is 25 of its : williams companys direct labor cost is 25 of its conversion cost. if the manufacturing overhead cost for the last

Utopia dance clubsinc rented an old warehouse for its : utopia dance clubsinc. rented an old warehouse for its newest club on oct.012010.to receive a discount utopia paid

Larson company issued 500000 of 8 5-year bonds at 106 : larson company issued 500000 of 8 5-year bonds at 106. assuming straight-line amortization and annual interest payments

A company is 40 financed by risk-free debt the interest : a company is 40 financed by risk-free debt. the interest rate is 10 the expected market risk premium is 8 and the beta

User Account

All Pages