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recorded as a deferred charge to be amortized over the term of
the bonds?
Question 11
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