Question
In: Accounting
In May 2017, Apple Inc., filed a prospectus with the SEC, indicating that it would be...
In May 2017, Apple Inc., filed a prospectus with the SEC, indicating that it would be issuing another $7 billion in bonds during 2017. (Apple now has almost $100 billion in debt). With the bond proceeds, Apple will be buying back its own stock and paying large dividends to shareholders.
1. What journal entry would Apple make when it issues $7 billion in bonds (ignore underwriting fees and assume the bonds were issued at par value May 31, 2017)? Please show debits and credits.
2. How are assets, liabilities, and equity impacted by the bond issuance?
3. On what financial statement is the balance of bonds payable shown? Where is it shown on that financial statement?
4. What journal entry would Apple make when it purchases its own stock? Assume Apple bought back 9,000,000 shares for $145 each on June 22, 2017. Please show debits and credits.
5. How are assets, liabilities, and equity impacted by the stock buyback?
6. On what financial statement is the balance of treasury stock shown? How is treasury stock shown on that financial statement?
Solutions
ekkarill92 answered 1 year agoRelated Solutions
In May 2017, Apple Inc., filed a prospectus with the SEC, indicating that it would be...
In May 2017, Apple Inc., filed a prospectus with the SEC,
indicating that it would be issuing another $7 billion in bonds
during 2017. (Apple now has almost $100 billion in debt).
With the bond proceeds, Apple will be buying back its own stock
and paying large dividends to shareholders.
Please answer questions below. Short answers are
okay!
What journal entry would Apple make when it issues $7 billion in
bonds (ignore underwriting fees and assume the bonds were issued...
what reports are filed with the SEC by public companies? Under what circumstances are they filed?
what reports are filed with the SEC by public companies? Under
what circumstances are they filed?
The____is a regulatory document filed with the SEC that describes the details of the IPO and...
The____is a regulatory document filed with the SEC
that describes the details of the IPO and is meant to help
investors make informed decisions.
a. red herring
b. prospectus
c. indenture
d. debenture
Daze filed his personal income tax for 2016 on May 4, 2017. He did not have...
Daze filed his personal income tax for 2016 on May 4, 2017. He did
not have any reasonable cause for delinquent tax filing. He also
inadvertently left out his bonus income $20,000 from reporting on
his tax return. His tax return without such bonus income shows
$100,000 gross income.
(1) The IRS initiated its audit on Daze’s 2016 tax
return on June 3, 2020. Does the IRS have authority to audit and
possibly litigate Daze’s tax return on the omission...
Daze filed his personal income tax for 2016 on May 4, 2017. He did not have...
Daze filed his personal income tax for 2016 on May 4, 2017. He
did not have any reasonable cause for delinquent tax filing. He
also inadvertently left out his bonus income $20,000 from reporting
on his tax return. His tax return without such bonus income shows
$100,000 gross income.
(1) The IRS initiated its audit on Daze’s 2016 tax return on
June 3, 2020. Does the IRS have authority to audit and possibly
litigate Daze’s tax return on the omission...
What are some of the features that could be included with a bond prospectus that may...
What are some of the features that could be included
with a bond prospectus that may have an impact on the yield of a
new bond issue?
The following financials are presented for Apple, Inc. for the years 2017 and 2018. (All values...
The following financials are presented
for Apple, Inc. for the years 2017 and 2018. (All values in USD
million)
2018
2017
Cash and cash equivalents
25,913
20,289
Marketable securities
40,388
53,892
Accounts receivable, net
23,186
17,874
Inventories
3,956
4,855
Other current assets
37,896
31,735
Total current assets
1,31,339
1,28,645
Total non-current assets
2,34,386
2,46,674
Total Assets
$3,65,725
$3,75,319
Current liabilities:
Accounts payable
$55,888
$44,242
Other current liabilities
60,978
56,572
Total current liabilities
$1,16,866
$1,00,814
Total non-current liabilities
1,41,712
1,40,458
Total...
SEC Fillings: Listed below are items that may or may not require the filing of an...
SEC Fillings:
Listed below are items that may or may not require the filing of an
SEC form. For each item ibelow, select the appropriate form from
the list provided. A selection may be used once, more than once, or
not at all.
-
1. 2.
3. 4.
5. 6.
7. 8.
9. 10.
11. ...
Listed below are items that may or may not require the filing of an SEC form....
Listed below are items that may or may not require the filing of
an SEC form.
For each item ibelow, select the appropriate form from the list
provided. A selection may be used once, more than once, or not at
all.
There is a change in beneficial ownership.
There is a change in control of the company.
The annual report providing a comprehensive overview of a
company's business and financial condition.
A brief notice that provides information about a company...
What is Apple Inc. NAICS code and why would they need the code.
What is Apple Inc. NAICS code and why would they need the
code.
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