Logo
Home Study Material Contact Search
AI Chat FREE
  1. business
  2. accounting
  3. on april 1, 2024, austere corporation issued $320,

On April 1, 2024, Austere Corporation issued $320,000 of 10% bonds...

60.1K

Verified Solution

Question

Accounting

image
On April 1, 2024, Austere Corporation issued $320,000 of 10% bonds at 108 . Each $1,000 bond was sold with 40 detachable stock warrants, each permitting the investor to purchase one share of common stock for $19. On that date, the market value of the common stock was $17 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 $320,000 $445,300 $244,500

Answer & Explanation Solved by verified expert
Get Answers to Unlimited Questions

Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!

Membership Benefits:
  • Unlimited Question Access with detailed Answers
  • Zin AI - 3 Million Words
  • 10 Dall-E 3 Images
  • 20 Plot Generations
  • Conversation with Dialogue Memory
  • No Ads, Ever!
  • Access to Our Best AI Platform: Flex AI - Your personal assistant for all your inquiries!
Become a Member

Other questions asked by students

Q

Interest Rate Parity (IRP). Give an example and application of each one of this theory in...

Finance
Q

Hunter Company is developing its annual financial statements at December 31. The statements are complete except...

Accounting
Q

Describe the trends in properties for the elements belonging to Group VI A in the periodic...

Chemistry
Q

What types of programs and services are offered to inmates, and what services are constitutionally mandated?...

Psychology
Q

1 mole of H gas is contained in a box of volume V 1 00...

Physics
Q

A company is considering a new manufacturing process It knows that the rate of savings...

Calculus
Q

Y 10 150 37 5 a Is this linear or exponential Years since 1985 Number...

Calculus
Q

On July 1, Shady Creek Resort borrowed $310,000 cash by signing a 10-year, 11% installment...

Accounting
Q

Which of the following may be used to determine fair value based on Level 3...

Accounting
Q

On October 5, ABC Company buys merchandise on account from XYZ Hill Company. The selling...

Accounting
Q

If the contribution margin ratio is 20%, then variable cost as a percentage of sales...

Accounting
Q

Why does the value of the call increase by less than $1 when the stock...

Finance