In May 2017, Apple (NASDAQ: AAPL) filed a prospectus with the SEC, indicating that it would be
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Question:
With the bond proceeds, Apple will be buying back its own stock. Apple has also indicated that there will be a 10.5 percent dividend increase for its shareholders.
Questions
What journal entry would Apple make when it issues $7 billion in bonds?
How are assets, liabilities, and equity impacted by the bond issuance?
Name the account(s) impacted and whether an increase of decrease.
On what financial statement is the balance of bonds payable shown? Where is it shown on that financial statement?
What journal entry would be made for the payment of interest (ignore the dollar amount - just account title(s) and debit/credit).
How does Apple's issuance of bonds and buyback of its own stock impact its accounting equation?
Related Book For
Financial Accounting Tools for Business Decision Making
ISBN: 978-0470239803
5th Edition
Authors: Jerry J. Weygandt, Paul D. Kimmel, Donald E. Kieso
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