subject
Business, 14.03.2020 02:37 MarMoney

Marley, Inc. sold $500,000 of its ten-year 8% bonds at 96 on January 1, 2014. Interest is paid each January 1 and July 1 and straight-line amortization is used. Each $1,000 bond is convertible into 100 shares of $10 par common stock. One-half of the bonds were converted on January 1, 2019, when the market value of the stock was $14 per share.

1.

The entry to record the conversion using the book value method would include a

a.

debit to Loss on Conversion for $5,000.

b.

debit to Retained Earnings for $5,000.

c.

debit to Discount on Bonds Payable for $5,000.

d.

credit to Additional Paid-in Capital from Bond Conversion for $5,000.

2.

The entry to record the conversion using the market value method would include a

a.

debit to Additional Paid-in Capital from Bond Conversion for $105,000.

b.

debit to Retained Earnings for $105,000.

c.

debit to Loss from Conversion for $105,000.

d.

credit to Gain from Conversion for $105,000.

ansver
Answers: 2

Another question on Business

question
Business, 22.06.2019 18:30
What historical context does wiesel convey using the allusion of a fiery sky? he compares the sky to hell. the fires from air raids during world war ii the cremation of jews in the concentration camps the outbreak of forest fires from bombs in world war ii
Answers: 1
question
Business, 22.06.2019 20:00
Acompetitive market in healthcare would a. overprovide healthcare because the marginal social benefit of healthcare exceeds the marginal benefit perceived by consumers b. underprovide healthcare because it would eliminate medicare and medicaid c. underprovide healthcare because the marginal social benefit of healthcare exceeds the marginal benefit perceived by consumers d. overprovide healthcare because it would be similar to the approach used in canada
Answers: 1
question
Business, 22.06.2019 21:30
An allergy products superstore buys 6000 of their most popular model of air filters each year. the price of the air filters is $18. the cost of ordering and receiving shipments is $12 per order. accounting estimates annual carrying costs are 20% of the price. the supplier lead time is 2 days. the store operates 240 days per year. each order is received from the supplier in a single delivery. there are no quantity discounts. what is the store’s minimum total annual cost of placing orders & carrying inventory?
Answers: 1
question
Business, 23.06.2019 15:10
Ansys license manager error capability cad interface parasolid does not exist in the ansys licensing pool non of the products enabling this capability are available in the specified license path
Answers: 2
You know the right answer?
Marley, Inc. sold $500,000 of its ten-year 8% bonds at 96 on January 1, 2014. Interest is paid each...
Questions
question
English, 07.12.2021 19:20
question
Mathematics, 07.12.2021 19:20
question
Biology, 07.12.2021 19:20
question
Computers and Technology, 07.12.2021 19:20
question
Computers and Technology, 07.12.2021 19:20
question
Biology, 07.12.2021 19:20
Questions on the website: 13722360