1. ETK's 12/31/21 Balance Sheet reported the following information: 7.8% registered bonds callable at 107 beginning in 2031, due 2035 (net of unamortized discount of $2 million) $53 million Equity - Stock Warrants $5 million ● The company disclosed the following information regarding their 7.8% bonds: "The bonds were issued in 2012 at 105 to yield 10%. Interest is paid semiannually on June 30 and December 31. Each $1,000 bond was issued with 40 detachable stock warrants, each of which entitles the holder to purchase one share of the Company's $1 par common stock for $35, beginning 2022." How much did total liabilities increase when the bonds were issued in 2012?

1. ETK's 12/31/21 Balance Sheet reported the following information: 7.8% registered bonds callable at 107 beginning in 2031, due 2035 (net of unamortized discount of $2 million) $53 million Equity - Stock Warrants $5 million ● The company disclosed the following information regarding their 7.8% bonds: "The bonds were issued in 2012 at 105 to yield 10%. Interest is paid semiannually on June 30 and December 31. Each $1,000 bond was issued with 40 detachable stock warrants, each of which entitles the holder to purchase one share of the Company's $1 par common stock for $35, beginning 2022." How much did total liabilities increase when the bonds were issued in 2012?

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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