Logo
Home Study Material Contact Search
AI Chat FREE
  1. business
  2. accounting
  3. teal corporation is a regional company which is an

Teal Corporation is a regional company which is an SEC registrant. The corporations securities are...

70.2K

Verified Solution

Question

Accounting

Teal Corporation is a regional company which is an SEC registrant. The corporations securities are thinly traded on NASDAQ. Teal Corp. has issued 15,500 units. Each unit consists of a $775 par, 12% subordinated debenture and 16 shares of $8 par common stock. The units were sold to outside investors for cash at $1,364 per unit. Prior to this sale, the 2-week ask price of common stock was $62 per share. Twelve percent is a reasonable market yield for the debentures, and therefore the par value of the bonds is equal to the fair value. (a) Prepare the journal entry to record Teals transaction, under the following conditions.

(1) Employing the incremental method.
(2) Employing the proportional method, assuming the recent price quote on the common stock reflects fair value.

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

Which of the following currently poses the single greatest threat to biodiversity?a. habitat lossb. invasive...

Biology
Q

Max Z = 2x1 + 8x2 + 4x3 subject to 2x1 + 3x2     ? 8 2x2 + 5x3    ...

General Management
Q

11 A student said that the equation of this graph is y 3x 4 a...

Basic Math
Q

Determine the location of all critical points and determine their nature that is min max...

Algebra
Q

Distribute and combine like 1 4 2x 8y 3x 6y

Algebra
Q

please help me fill these in! ower-of-cost-or-matket...

Accounting
Q

4. During June, the receipts and issuances of Material No. A2FO are as follows: (9...

Accounting
Q

Use the following information for the Quick Study below. The following information applies to the...

Accounting
Q

Blazer Chemical produces and sells an ice-melting granular used on roadways and sidewalks in winter....

Accounting
Q

What forecasting technique makes use of written surveys or telephone interviews

Accounting
Q

Current Attempt in Progress Faune Furniture Co. consists of two divisions, Bedroom Division and Dining...

Accounting
Q

True / False Questions 106. Investors may obtain the same securities at the same time...

Finance