SELL
Answers
$2.50
Add to wishlist
150
9
(3)

ACC 308 Week 6 Chapter 14 Homework

ACC 308 Week 6 Chapter 14 CENGAGENOW Homework Taken in May-June of 2019 Questions 1-8 WITH ANSWERS in Document Questions are listed below so you can see if this is the document you are looking for. 1. On January 1, Canglon, Inc., issues 10%, 5-year bonds with a face value of $150,000 when the effective rate is 12%. Interest is to be paid semiannually. Prepare calculations to prove that the selling price of the bonds is $138,959.90. 2. On January 1 (the authorization date) of the current year, Temple Company issues $500,000 of 9% bonds at 103. These bonds pay interest on June 30 and December 31. 3. Bonds with Detachable Warrants Langdon & Co. issues bonds with a face value of $50,000 for $51,000. Each $1,000 bond carries 10 warrants, and each warrant allows the holder to acquire one share of $1 par common stock for $40 per share. Immediately after the issuance, the bonds are quoted at 99 ex rights and the warrants are quoted at $5 each. Calculate the value to be assigned to the bonds and to the warrants. Round your answers to two decimal places. 4. Nolan Corporation has outstanding convertible bonds with a face value of $15,000 and a current book value of $17,500. Each $1,000 bond is convertible into 25 shares of common stock (par value $5 per share). All the bonds are converted into common stock on June 1 when the market value of Nolan’s common stock is $50 per share. 5. On January 1, 2016, Knorr Corporation issued $1,000,000 of 9%, 5-year bonds dated January 1, 2016. The bonds pay interest annually on December 31. The bonds were issued to yield 10%. Bond issue costs associated with the bonds totaled $18,000. 6. On January 1, 2016, Knorr Corporation issued $1,400,000 of 6%, 5-year bonds dated January 1, 2016. The bonds pay interest annually on December 31. The bonds were issued to yield 7%. Bond issue costs associated with the bonds totaled $27,560.53. 7. On January 1, 2015, when its $30 par value common stock was selling for $80 per share, a corporation issued $10 million of 10% convertible debentures due in 10 years. The conversion option allowed the holder of each $1,000 bond to convert it into six shares of the corporation’s $30 par value common stock. The debentures were issued for $11 million. At the time of issuance, the present value of the bond payments was $8.5 million, and the corporation believes the difference between the present value and the amount paid is attributable to the conversion feature. On January 1, 2016, the corporation’s $30 par value common stock was split 3 for 1. On January 1, 2017, when the corporation’s $10 par value common stock was selling for $90 per share, holders of 40% of the convertible debentures exercised their conversion options. The corporation uses the straight-line method for amortizing any bond discounts or premiums. 8. On January 1, 2015, when its $30 par value common stock was selling for $80 per share, a corporation issued $10 million of 14% convertible debentures due in 10 years. The conversion option allowed the holder of each $1,000 bond to convert it into six shares of the corporation’s $30 par value common stock. The debentures were issued for $11 million. At the time of issuance, the present value of the bond payments was $8.50 million, and the corporation believes the difference between the present value and the amount paid is attributable to the conversion feature. On January 1, 2016, the corporation’s $30 par value common stock was split 3 for 1. On January 1, 2017, when the corporation’s $10 par value common stock was selling for $90 per share, holders of 40% of the convertible debentures exercised their conversion options. The corporation uses the straight-line method for amortizing any bond discounts or premiums.

Preview 1 out of 6 pages
Reviews ( 3 )
By ryandf27  · 1 day ago
By lorrainejennings2  · 1 week ago
By hdh08  · 1 day ago
Can i ask why you only rated as 4 stars? Did you have an issue with the homework?
By isabela571  · 1 week ago
Answers
$2.50
Add to wishlist
100% Money Back Guarantee
Download is directly available
Better prepared for your exams
150
9
(3)
Document information
Connected school, study & course
About the document
Subjects
Uploaded on
June 19, 2019
Number of pages
6
Written in
2018/2019
Type
Answers
Person
Unknown
Seller
BRONZE  
hdh08
Member since 1 year ago
23 documents sold
Reviews received:
5
1
2
2
1
More courses of Accounting And Finance - Unviversity Of Phoenix

The best study guides

Avoid resits and achieve higher grades with the best study guides, textbook notes, and class notes written by your fellow students.
Avoid resits
With the study guides and notes written by fellow students, you are guaranteed to be properly prepared for your exams. Over 350,000 specific notes are at your disposal. Your fellow students know exactly where the pitfalls lie and what the key elements will be to your success in that module. With their assistance, you can become well prepared and can avoid having to retake exams.
Get better grades
Thanks to the study guides written by fellow students specifically for your courses, you will never miss a trick when it comes to your exams. No generic book summaries, but the specific content you need to ace your exams.
Earn while you study
Have you written lots of study guides or notes? Earn hundreds of dollars each month by selling your written material to your fellow students. Last year students earned over $ 500,000 from selling their work to other students.
×