Homework Help Question & Answers

On April 1, 2021, Austere Corporation issued $300,000 of 10% bonds at 105. Each $1,000 bond...

On April 1, 2021, Austere Corporation issued $300,000 of 10% bonds at 105. Each $1,000 bond was sold with 25 detachable stock

On April 1, 2021, Austere Corporation issued $300,000 of 10% bonds at 105. Each $1,000 bond was sold with 25 detachable stock warrants, each permitting the investor to purchase one share of common stock for $17. On that date, the market value of the common stock was $15 per share and the market value of each warrant was $2. Austere should record what amount of the proceeds from the bond issue as an increase in liabilities? $0. $315,000. $300,000 $285,000.
0 0
Next > < Previous
Answer

This Homework Help Question: "On April 1, 2021, Austere Corporation issued $300,000 of 10% bonds at 105. Each $1,000 bond..." No answers yet.

Be the First!

Request Answer

Request answer!

We need 10 more requests to produce the answer to this homework help question. Share with your friends to get the answer faster!

0 /10 have requested the answer to this homework help question.

Request! (Login Required) Share with friends


Once 10 people have made a request, the answer to this question will be available in 1-2 days.
All students who have requested the answer will be notified once they are available.
Know the answer?
Add Answer of:
On April 1, 2021, Austere Corporation issued $300,000 of 10% bonds at 105. Each $1,000 bond...
Your Answer: Your Name: What's your source?
Similar Homework Help Questions
  • 1 question 2 parts On April 1, 2021, Austere Corporation issued $300,000 of 10% bonds at...

    1 question 2 parts On April 1, 2021, Austere Corporation issued $300,000 of 10% bonds at 105. Each $1,000 bond was sold with 25 detachable stock warrants, each permitting the investor to purchase one share of common stock for $17. On that date, the market value of the common stock was $15 per share and the market value of each warrant was $2. Austere should record what amount of the proceeds from the bond issue as an increase in liabilities?...

  • On April 1, 2021, Austere Corporation issued $350,000 of 10% bonds at 107. Each $1,000 bond...

    On April 1, 2021, Austere Corporation issued $350,000 of 10% bonds at 107. Each $1,000 bond was sold with 40 detachable stock warrants, each permitting the investor to purchase one share of common stock for $17. On that date, the market value of the common stock was $15 per share and the market value of each warrant was $2. Austere should record what amount of the proceeds from the bond issue as an increase in liabilities? Multiple Choice $271,000. $0....

  • On April 1.2021. Austere Corporation issued $360,000 of 14% bonds at 105. Each $1,000 bond was...

    On April 1.2021. Austere Corporation issued $360,000 of 14% bonds at 105. Each $1,000 bond was sold with 30 detachable stock warrants, each permitting the investor to purchase one share of common stock for $16. On that date, the market value of the common stock was $13 per share and the market value of each warrant was $3. Austere should record what amount of the proceeds from the bond issue as an increase in labilities? Multiple Choice O 0 5470.900...

  • On April 1, 2018, Austere Corporation issued $390,000 of 11% bonds at 107. Each $1,000 bond...

    On April 1, 2018, Austere Corporation issued $390,000 of 11% bonds at 107. Each $1,000 bond was sold with 40 detachable stock warrants, each permitting the investor to purchase one share of common stock for $18. On that date, the market value of the common stock was $14 per share and the market value of each warrant was $4. Austere should record what amount of the proceeds from the bond issue as an increase in liabilities? Multiple Choice Ο Ο...

  • on April 1, 2016. the happy city issued $ 300,000 of 10% bonds at 105. each...

    on April 1, 2016. the happy city issued $ 300,000 of 10% bonds at 105. each 1000 bond was sold with 25 detachable stock warrants, each permitting the investor to purchase one share of common stock for $19. on that date the market value of each warrant was 4. on March 1, 2017, when the happy city's common stock had a market price of $20 per share, 40% of the warrants were exercised. the company's entry on march 1, 2017...

  • On August 1, 2021, Limbaugh Communications issued $42 million of 10% nonconvertible bonds at 105. The...

    On August 1, 2021, Limbaugh Communications issued $42 million of 10% nonconvertible bonds at 105. The bonds are due on July 31, 2041. Each $1,000 bond was issued with 20 detachable stock warrants, each of which entitled the bondholder to purchase, for $50, one share of Limbaugh Communications' no par common stock. Interstate Containers purchased 20% of the bond issue. On August 1, 2021, the market value of the common stock was $45 per share and the market value of...

  • 1-Auerbach Inc. issued 8% bonds on October 1, 2018. The bonds have a maturity date of...

    1-Auerbach Inc. issued 8% bonds on October 1, 2018. The bonds have a maturity date of September 30, 2028 and a face value of $375 million. The bonds pay interest each March 31 and September 30, beginning March 31, 2019. The effective interest rate established by the market was 10%. Assuming that Auerbach issued the bonds for $328,266,900, what interest expense would it recognize in its 2018 income statement? 2-Auerbach Inc. issued 6% bonds on October 1, 2018. The bonds...

  • On December 1, 2018, Jones Company issued at 105, nine hundred of its 10%, $1,000 bonds....

    On December 1, 2018, Jones Company issued at 105, nine hundred of its 10%, $1,000 bonds. Attached to each bond was one detachable stock warrant entitling the holder to purchase 20 shares of Jones' common stock. On December 1, 2018, the market value of the bonds, without the stock warrants, was 90, and the market value of each stock purchase warrant was $10. The initial carrying value of the bonds payable would be: $945,000 $900,000 $1,000,000 $1,055,000 QUESTION 10 On...

  • On April 1, Year 1, Ward Corp. issued $750,000 of 10% nonconvertible bonds at 102 that...

    On April 1, Year 1, Ward Corp. issued $750,000 of 10% nonconvertible bonds at 102 that are due on March 31, Year 11. Each $1,000 bond was issued with 40 detachable stock warrants, each of which entitled the bondholder to purchase one share of Ward $10 par common stock for $25. On April 1, Year 1, the market value of Ward's common stock was $20 per share, and the market value of each warrant was $4. What amount of the...

  • On March 1, 2021, E Corp. issued $1,000,000 of 10% nonconvertible bonds at 106, due on...

    On March 1, 2021, E Corp. issued $1,000,000 of 10% nonconvertible bonds at 106, due on February 28, 2031. Each $1,000 bond was issued with 37 detachable stock warrants, each of which entitled the holder to purchase, for $60, one share of Evan's $30 par common stock. On March 1, 2021, the market price of each warrant was $4. By what amount should the bond issue proceeds increase shareholders' equity? 1 o o o $148,000. o $11,000.

Free Homework App
Download From Google Play
Scan Your Homework
to Get Instant Free Answers
Need Online Homework Help?
Ask a Question
Get Answers For Free
Most questions answered within 3 hours.