FINANCIAL ACCOUNTING
10th Edition
ISBN: 9781259964947
Author: Libby
Publisher: MCG
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When the cash proceeds from a bond issued with detachable stock purchase warrants exceed the sum of the par value of the bonds and the fair value of the warrants, the excess should be credited to:
a. Additional Paid-in Capital
b. Retained Earnings
c. Premium on Bonds Payable
d. Detachable Stock Warrants Outstanding
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- Bonds that are issued on the general creditworthiness of the company are: Bonds that are issued on the general creditworthiness of the company are: 1. callable bonds 2. convertible bonds 3. secured bonds 4. debenture or unsecured bondsarrow_forwardThe debt component of convertible bonds issued using IFRS is the a. present value of the future cash flows at the market interest rate b. present value of the future cash flows at the stated interest rate c. market value of similar bonds without a conversion feature d. same as the calculation for GAAParrow_forward22. Investments in debt securities made to generate trading gains are classified as: Multiple Choice trading securities. available-for-sale securities. minority securities. held to maturity securities.arrow_forward
- Held-to-maturity securities: A. All of these choices. B. include stocks as well as bonds. C. may be reported as current or noncurrent assets. D. are reported at fair market value.arrow_forward3. Which of the following categories of investments are reported at their fair values on the balance sheet and have unrealized holding gains and losses included as a separate component of stockholders' equity? a. held-to-maturity debt securitiesb. marketable securitiesc. available-for-sale securitiesd. trading securitiesarrow_forwardWhat is Correct optionarrow_forward
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