BUSINESS COLLEGE

On July 1, 2012, Roberts Corporation issued $3,000,000 of 9% bonds payable in 20 years. The bonds include detachable warrants giving the bondholder the right to purchase for $30 one share of $1 par value common stock at any time during the next 10 years. The bonds were sold for $3,000,000. The value of the warrants at the time of issuance was $100,000. Required:
A) Prepare the journal entry to record this transaction.

Answers

Answer 1
Answer:

Answer:

cash            3,000,000 debit

discount on BP 96,600 debit

  bonds payable         3,000,000 credit

  warrant on Stocks         96,600 credit

Explanation:

bonds face value 3,000,000

warrants                    100,000

bonds weights: 3,000,000 / 3,100,000 = 0,9678

warrant weights: 100,000 / 3,100,000 = 0,0322

received                 3,000,000

bonds 3,000,000 x .9678 =  2.903.400‬

warrant 3,000,000 x 0.0322 =   96.600‬

the difference to blaance the entry will be the bond discount.


Related Questions

COLLEGE

Jack Corp. has a profit margin of 6.4 percent, total asset turnover of 1.77, and ROE of 15.84 percent. What is this firm’s debt-equity ratio? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.)

Answers

The firm's debt to equity ratio is 0.40

Return on equity (ROE) = net income / average total equity

Using the Dupont formula, ROE can be determined using:

ROE = Net profit margin x asset turnover x financial leverage

ROE = (Net income / Sales) x (Sales/Total Assets) x (total asset / common equity)

15.84 = 6.4 X 1.77 x financial leverage

financial leverage = 15.84 / (6.4 X 1.77) =

15.84 / 11.328 = 1.40

Debt to equity ratio = financial leverage - 1

1.40 - 1 = 0.40

To learn more about debt to equity ratio , please check  brainly.com/question/10782180?referrer=searchResults

Answer:

40%

Explanation:

Given that,

Profit margin = 6.4 percent

Total asset turnover = 1.77

ROE = 15.84 percent

ROE = Profit margin × Total asset turnover × Leverage ratio

0.1584 = 0.064 × 1.77 × Leverage ratio

Leverage ratio, EM = 0.1584 ÷ (0.064 × 1.77)

                                 = 1.398 or 1.40

Therefore,

firm’s debt-equity ratio = EM - 1

                                      = 1.40 - 1

                                      = 0.4 or 40%

COLLEGE

What are the elements of Attribution Theory ?

Answers

1. Internal Attribution: The process of assigning the cause of behaviour to some internal characteristic, rather than to outside forces. When we explain the behavior of others we look for enduring internal attributions, such as personality traits. For example, we attribute the behavior of a person to their personality, motives or beliefs.

2. External Attribution: The process of assigning the cause of behaviour to some situation or event outside a person's control rather than to some internal characteristic. When we try to explain our own behavior we tend to make external attributions, such as situational or environment features.
HIGH SCHOOL

When janice went to work as a hair stylist in rick's beauty shop, she entered into an agreement with rick whereby if she left she would not work for another beauty shop within 50 miles for 2 years. rick trained janice in a number of new techniques. after nine months, janice was offered a great job down the street at a new beauty shop, quit rick, and had a number of customers follow her down the street to her new job. rick claimed that she had signed a contract and had no right to go to work at the new shop. janice disagreed and told rick that no judge in the country would enforce such an agreement. janice told rick that she was more worried about a customer who was threatening to?

Answers

The question is incomplete, here is the complete question which I previously came across;

When Janice went to work as a hair stylist in Rick's beauty shop, she entered into an agreement with Rick, whereby, if she left she would not work for another beauty shop within 50 miles for 2 years. Rick trained Janice in a number of new techniques. After nine months, Janice was offered a great job down the street at a new beauty shop, quit Rick, and had a number of customers follow her down the street to her new job. Rick claimed that she had signed a contract and had no right to go to work at the new shop. Janice disagreed and told Rick that no judge in the country would enforce such an agreement. Janice told Rick that she was more worried about a customer, Treena, who was threatening to sue her because her hair turned green after Janice worked on it. Janice agreed that Treena's hair was damaged. Janice pointed out, however, that she told Treena that odd results could result from a dye attempt, and she required that Treena sign a contract releasing Janice from all liabilities before she did anything with Treena's hair. Treena, however, sued anyway. The agreement Rick and Janice entered into is referred to as?


The answer is, the agreement Rick and Janice entered into is referred to as "covenant not to compete".


It is hard to decide if a judge will implement a non-competition agreement. While the privileged insights of a business are important, the law additionally puts value to a person's opportunity to seek after other work. To be enforceable Courts more often than not require that a contract not to compete be sensible. In California, non-competes are adequately unlawful except if you are selling a business. Different states will implement a few provisions, as a rule the trade secret protection, however not the work limitations.

COLLEGE

A & B Commercial Cleaning is a new business. During its first year of operations, credit sales were $42,000 and collections from credit sales were $31,000. One account for $625 was written off. Management uses the percent-of-sales method to account for bad debts expense and estimates 2% of credit sales to be uncollectible. What is the balance of Accounts Receivable at the end of the first year? A) $11,000

Answers

Answer:

8,300.0  

Explanation:

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