Long-term debt: This is a financial or lease obligation, owed by a company, which have a maturity of more than 12-month period. To discuss: The ethical issues related to the issue of long-term bonds, without disclosing the plans of additional issue of long-term bonds

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Lizbeth Johnson, controller of Detroit Industries, a public company, is currently preparing the calculation for basic and diluted earnings per share and the related disclosure for Detroit’s financial statements. Below is selected financial information for the fiscal year ended March 31, 2021. Long-term debt Notes payable to banks, 12% .................................................... $ 4,000,000 4% convertible bonds payable ..................................................... 8,000,000 12% bonds payable...................................................................... 3,000,000 Total long-term debt.................................................................................. $15,000,000 Shareholders’ equity Preferred stock, 5% cumulative, $100 par value, 100,000 shares authorized, 50,000 shares issued and outstanding ....................................................................... $ 5,000,000 Common stock, $1 par, 10,000,000 shares authorized,…

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Chapter 14, Problem 14.1CP

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Long-term debt: This is a financial or lease obligation, owed by a company, which have a maturity of more than 12-month period.

To discuss: The ethical issues related to the issue of long-term bonds, without disclosing the plans of additional issue of long-term bonds

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Lizbeth Johnson, controller of Detroit Industries, a public company, is currently preparing the calculation for basic and diluted earnings per share and the related disclosure for Detroit’s financial statements. Below is selected financial information for the fiscal year ended March 31, 2021. Long-term debt Notes payable to banks, 12% .................................................... $ 4,000,000 4% convertible bonds payable ..................................................... 8,000,000 12% bonds payable...................................................................... 3,000,000 Total long-term debt.................................................................................. $15,000,000 Shareholders’ equity Preferred stock, 5% cumulative, $100 par value, 100,000 shares authorized, 50,000 shares issued and outstanding ....................................................................... $ 5,000,000 Common stock, $1 par, 10,000,000 shares authorized,…

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