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.

Q: Langdon & Co. issues bonds with a face value of $50,000 for $51,000. Each $1,000 bond carries 10…

A: Value assigned to bonds = (Market value of Bonds without warrant /Market value of Bonds Without…

Q: On December 1, 2020, the ABC corporation issued 500 bonds with a par value of $ 1,000 at 9%, at 103.…

A: Bonds: Bonds are debts instruments issued by corporates. Bonds are issued at par, premium and…

Q: On May 1, 2022, Marly Co. issued €500,000 of 7% bonds at 103, which are due on April 30, 2032.…

A: Bonds payable is a form of liabilty for the business, on which regular interest payments needs to be…

Q: On July 1, 2020, Shake Corporation issued its 10%, 7-year bonds with one detachable warrant attached…

A: solution : the issued instrument is a compound financial instrument We shall identify the financial…

Q: Medhurst Corporation issued $92,700 in bonds for $90,000. The bonds had a stated rate of 10% and pay…

A: Premium (Discount) on bonds issue = Selling price of the bonds - Face value of bonds = $90,000 -…

Q: 1. Prepare the journal entries on August 1, 2022, to record (A) the issuance of the bonds by United…

A: Bonds give the investors more rights than those of common stock holders. Bonds can be of 2 types…

Q: Ajax, Inc., issued callable bonds with a par value of $1,000,000 that require the payment of a call…

A: The Journal entry will be passed as follows on 30 Sept

Q: Inc. issued 55 bonds with a $1,500 face value, a five-year life, and a stated annual coupon of 5%…

A: In the given case the bonds are issued at discount (as its face value is $ 1,500 and issue price is…

Q: A company issues 1,000 bonds, each with a face value of $1,000, for $1.1 million. Each bond has a…

A: Warrants are a sort of financial instrument that offers the right to acquire an underlying share at…

Q: Rubash Company recently issued two types of bonds. The first issue consistedof 20-year straight (no…

A: Computation of value of warrants of the second bond issue: Answer: The value of warrants of the…

Q: A company issues bonds with a face value of $5,000,000 and receives cash proceeds of $5,500,000 from…

A: Journal entries are prepared to record the financial and non financial transactions of the business…

Q: Issues bonds with a face value of $50,000 for $51,000. Each $1,000 bond Carries 10 warrants, and…

A:

Q: Moss Co. issued $101,000 of five-year, 12% bonds with interest payable semiannually, at a market…

A: A bond is a debt instrument that is issued by the organization to raise the funds from the investor…

Q: On December 31, 2019, Armada Company issued 5,000,000 face amount, 5 year bonds at 109.  Each 1,000…

A: Share warrant: Share Warrant is a document which entitles  bearer of this document for  the shares…

Q: Hoffman Corporation issued $80 million of 7%, 10-year bonds at 104. Each of the 80,000 bonds was…

A: Equity - Stock warrants = No. of bonds x No.of detachable stock warrant x Market value of each…

Q: During 2018, QQ Corporation issued at 95, 1,000 of its 8%, P5,000 bonds due in ten years. One…

A: Solution- Market price of bond= 50000* 1000 * .06 ( 60 * 10%)= 3000000 Market value of stock warrent…

Q: Barbie originally issued 5,000,000 face value bonds at 105 or a premium of 250,000.  Subsequently,…

A: Bond Bond is an instrument which are issued by the federal authority which is used by the corporate…

Q: On January 1, 2018, Fort Industrial Corp. issued bonds with a face value of $1,000,000. The bonds…

A: Bonds are the instrument acknowledging debt due from one party to another party on specified future…

Q: Wasabi Inc. and Tempura Corporation have both issued 5 million common stocks. In addition, Wasabi…

A: Conversion Value : It is determined by multiplying the Stock Price by the Conversion ratio.…

Q: The carrying amount of the bonds as of December 31, 2022 is: 2. The amount to be allocated to the…

A:

Q: Keys Inc. Issued 100 bonds with a face value of $1,000 and a rate of 8% at $1,025 each. The journal…

A: Bonds: Bonds are long-term promissory notes that are issued by a company while borrowing money from…

Q: On January 1, 2020, Safety Company issued 10,000 P1,000 bonds with 10% stated interest payable every…

A: 3.How much is the net increase/decrease in the Shareholders' Equity during 2021? [Indicate whether…

Q: On January 1, a company issued a 5-year $100,000 bond at 6%. Interest payments on the bond of $6,000…

A: Bonds: Bonds are long-term promissory notes that are issued by a company while borrowing money from…

Q: On January 1, 2013, Jones Inc. issued a $100,000 face value bond for proceeds of $97,654. On June…

A: A business registered as a public company has an advantage of raising capital from the public. The…

Q: Fareed purchases a bond, newly issued by the Big Time Corporation, for $20,000. The bond pays $1,000…

A: Principal amount: Principal amount is the original amount of money borrowed by a person. In bonds,…

Q: Gomez Company issues $10,000,000 of bonds with a coupon rate of 8%. To help the sale, detachable…

A: Stock Warrant: It is a financial contract between a company and investors. Stock warrant provides…

Q: Morgan company issues 9%, 20-year bonds with a par value of 780,000 that pay interest semiannually .…

A: Bonds:   Bonds are long-term promissory notes that are represented by a company while borrowing…

Q: On December 31, 2021, This Company issued P5,000,000 face value, 5-year bonds at 109. Each P1,000…

A: Given data, Face value of bonds=P5,000,000 Interest rate on bonds =11% prevailing market rate of…

Q: [45] During its current fiscal year, ING Co. issued bonds with a face amount of $1 million for 104.…

A: Note: We’ll answer the first question since the exact one wasn’t specified. Please submit a new…

Q: Hoffman Corporation issued $60 million of 5%, 20-year bonds at 102. Each of the 60,000 bonds was…

A:

Q: Starmount Inc. sold bonds with a $50,000 face value, 12% interest, and 10-year term at $48,000. What…

A: Given,  Bond Face Value $  50,000    Issue Proceeds $  48,000    Discount on Bonds $    2,000…

Q: What amount of share premium on the issuance of the shares as a result of the exercise of the…

A: The determination of amount of Share Premium on the issuance of shares as a result of the exercise…

Q: The date is January 1, 2018. Nomi Corporation issued 4,000 five-year bonds of 10% P1,000 face value,…

A: Issued  value of bonds = 4000 having  face value  = P1000 Number of bonds = 4000/1000 =4 bonds

Q: In 2015, The Platinum Company issued $700,000 8% bonds with 700 nondetachable warrants for $765,000…

A: When the issuer of the bonds gives the holders of the bonds a right to purchase a specified number…

Q: In April 2007, Blood corporation issued 3,000,000 of 10% nonconvertible bonds at 102 that are due on…

A:

Q: Five thousand bonds with a face value of $1000 each, are sold at 109. The entry to record the…

A: In this numerical has covered the concept of Bonds Payable.

Q: Uberita Company issued 5,000 convertible bonds at the beginning of the current year. The bonds had a…

A: Date Transaction Debit Credit Jan-01 Cash 5000000     6% Convertible Bonds Payable   4515000…

Q: On December 30, year 1, Fort, Inc. issued 1,000 of its 8%, ten-year, P1,000 face value bonds with…

A: The question is related to calculation of amount of bonds payableto be reported as on December 31st…

Q: Moss Co. issued $101,000 of four-year, 12% bonds with interest payable semiannually, at a market…

A: Present value of the bonds payable = Present value of principal + Present value of interest payments…

Q: ABC Corporation has 4,000, 10%, 10-year bonds, face value 1,000, and sold it at 105. Each bond is…

A: Bonds are the highly secured instruments that are issued by the entities so that investors can…

Q: What amount did Mountain receive from the bond issuance?

A: Given: No of Bonds Issued 200 Face Value  ₱1,000 Issued at premium of 1% Rate of Interest 9%…

Q: Evie Inc. issued 52 bonds with a $1,200 face value, a five year life, and a stated annual coupon of…

A: Total amount of interest expense over the life of the bond is as under-

Q: If Intervale Railway invests $100,000 in 5% bonds at face value that the company intends to hold…

A: Held-to-maturity Debt investments:  Held-to-maturity debt investments are the investments in debt…

Q: On July 1, 2021, GIl Inc. received 103,288 for each 100,000 face value bonds, 12% bonds, a price…

A: Interest payable on December 31, 2021 = (Face value per bonds x no. of bonds) x rate of interest x…

Q: During 2016, Royal Corporation issued at 105, two hundred of its 8%, P 1,000 bonds in ten years. One…

A: Bonds: Bonds are one of the tradeable security in the stock market that provides fixed rate of…

Q: Evie Inc. issued 49 bonds with a $1,400 face value, a five-year life, and a stated annual coupon of…

A: Bonds payable are one of the sources of finance and are shown as liability. If the interest rate is…