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Nero Solutions Co . issued an $ 8 3 0 , 0 0 0 , 7 % , three - year bond for $ 8
Nero Solutions Co issued an $ threeyear bond for $ The bond pays interest annually, at each yearend. At
maturity, the bond can be repaid in cash or converted to common shares at the investor's option. The market interest rate for
bonds of similar term and risk, but that are not convertible, is in the range of
Required:
Calculate the portion of the bond to be recorded as a liability. Do not round intermediate calculations. Round your final answer to
the nearest whole dollar amount.
Bond liability
Provide the entry to record issuance of the bond. If no entry is required for a transactionevent select No journal entry
required" in the first account field. Do not round intermediate calculations. Round your final answers to the nearest whole dollar
amount. Twixt Corp. issued $ of convertible bonds on January for $ cash. The bond had the following terms:
Bonds mature in five years' time.
Annual interest, is paid each December.
Bonds are convertible to common shares at maturity or can be repaid in cash. This choice is up to Twixt Corp.
Current market interest rates are
Required:
Assign a value to the liability and the equity portions of the bond. Do not round intermediate calculations. Round your final
answers to the nearest whole dollar amount.Maritime Corp. is a junior mining company listed on the TSX The common share price of Maritime fluctuates in value. Recent swings
went from a high of $ to a low of $ Maritime issued stock options on September to a consultant, in exchange for a
project completed over the last year. The consultant estimated her time was worth $ but the company estimated that it could
have had the necessary work done for about $ cash. The options specified that common shares could be bought for
$ per share at any time over the next years. The market price of common shares was $ on the day the options were
issued. At the same time options were issued to the consultant, identical options were issued to the company lawyer for work done to
date. An option pricing model valued each set of stock options at $
Required:
Provide journal entries to record issuance of the two sets of options. If no entry is required for a transactionevent select No
journal entry required" in the first account field.
Journal entry worksheet
Record the entry for granting stock rights towards Consulting expense.
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