The primary purpose of a quasi-reorganization is to give a corporation the opportunity to
Question 12
Clay Corp. had $ 600,000 of convertible 8 % bonds outstanding at June 30, 2005. Each $ 1,000 bond was convertible into 10 shares of Clay ' s $ 50 par value common stock. On July 1, 2005, the interest was paid to bondholders and the bonds were converted into common stock, which had a fair market value of $ 75 per share. The unamortized premium on these bonds was $ 12,000 at the date of conversion. Under the book value method, this conversion increased the following elements of the stockholders ' equity section by
Question 13
On December 31, 2003, Moss Co. issued $ 1,000,000 of 11 % bonds at 109. Each $ 1,000 bond was issued with 50 detachable stock warrants, each of which entitled the bondholder to purchase one share of $ 5 par common stock for $ 25. Immediately after issuance, the market value of each warrant was $ 4. On December 31, 2003, what amount should Moss record as discount or premium on issuance of bonds?
Question 14
During 2005, Brad Co. issued 5,000 shares of $ 100 par convertible preferred stock for $ 110 per share. One share of preferred stock can be converted into three shares of Brad ' s $ 25 par common stock at the option of the preferred shareholder. On December 31, 2006, when the market value of