User Account

All Pages

Question - Issuance of Bonds with Detachable Warrants

Assignment Help Accounting Basics
Reference no: EM132648665

Question - Issuance of Bonds with Detachable Warrants

On December 1, 2020, Giles Company sold 10,000 of its 10%, 15-year, $1,000 face value, nonconvertible bonds with detachable stock warrants at 102. Each bond carried three detachable warrants. Each warrant was for one share of common stock at a specified option price of $27 per share. Shortly after issuance, the warrants were quoted on the market for $2.50 each. No market value can be determined for the Giles Company bonds. Interest is payable on December 1 and June 1. Prepare the journal entry to record the issuance of bonds.

Reference no: EM132648665

Questions Cloud

What are the different needs required for data : What is cost data for managerial accountingwhat are trends in cost accounting and budgeting. what are the different needs required for data
What is the npv break-even level of diamonds : What is the accounting break-even level of sales in terms of number of diamonds sold? (Do not round intermediate calculations.)
What is the degree of operating leverage of project : A project has fixed costs of $2,100 per year, depreciation charges of $300 a year, annual revenue of $16,200, and variable costs equal
Find variable or fixed with respect to the number of units : Find variable or fixed with respect to the number of units produced and sold and then whether it would be a selling cost, an administrative cost
Question - Issuance of Bonds with Detachable Warrants : Issuance of Bonds with Detachable Warrants - Interest is payable on December 1 and June 1. Prepare the journal entry to record the issuance of bonds
Demonstrate a connection to your desired work environment : Demonstrate a connection to your current work environment. If you are not employed, demonstrate a connection to your desired work environment.
What is the price of an eight-month european call : Spot price=86, strike price=88m, risk-free rate of return with continuous compounding of 6% and the fact that the volatility of the share
Find the amount of interest expense to be reported on July : If Sage uses the straight-line method to amortize bond premium or discount, find the amount of interest expense to be reported on July 1, 2020
Prepare hamilton corporation journal entry : Prepare Hamilton corporation journal entry.Hamilton Corporation was authorized to issue 20,000 shares of $100 par value, 5% preferred stock and 50,000 share

Reviews

Write a Review

Accounting Basics Questions & Answers

  How much control does fed have over this longer real rate

Hubbard argues that the Fed can control the Fed funds rate, but the interest rate that is important for the economy is a longer-term real rate of interest.   How much control does the Fed have over this longer real rate?

  Coures:- fundamental accounting principles

Coures:- Fundamental Accounting Principles: - Explain the goals and uses of special journals.

  Accounting problems

Accounting problems,  Draw a detailed timeline incorporating the dividends, calculate    the exact Payback Period  b)   the discounted Payback Period. the IRR,  the NPV, the Profitability Index.

  Theory of interest - term structure of interest rates

Term Structure of Interest Rates

  Write a report on internal controls

Write a report on Internal Controls

  Prepare the bank reconciliation for company

Prepare the bank reconciliation for company.

  Cost-benefit analysis

Create a cost-benefit analysis to evaluate the project

  Theory of interest

Theory of Interest: NPV, IRR, Nominal and Real, Amortization, Sinking Fund, TWRR, DWRR

  Liquidity and profitability

Distinguish between liquidity and profitability.

  What is the expected risk premium on the portfolio

Your Corp, Inc. has a corporate tax rate of 35%. Please calculate their after tax cost of debt expressed as a percentage. Your Corp, Inc. has several outstanding bond issues all of which require semiannual interest payments.

  Simple interest and compound interest

Simple Interest, Compound interest, discount rate, force of interest, AV, PV

  Capm and venture capital

CAPM and Venture Capital

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!

Submit Assignment

Academics

Major Subjects

Majors

Get In Touch

whatsapp: +91-977-207-8620

Phone: +91-977-207-8620

Email: [email protected]

TERMS & POLICIES

HELP & SUPPORT

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