February 20, 2017

Homework Help: Accounting

Posted by Karen on Tuesday, May 22, 2012 at 2:14pm.

Susan Kline works for Trend Press, a fairly large book publishing firm. Her best friend and rival, Lisa, works for Silver Books, a smaller publisher. Both companies issue $100,000 in bonds on July 1. Trend's bonds were issued at a discount, while Silver's were issued at a premium. Lisa sent Susan a fax the next day. She told Susan that it was obvious who the better publisher was—the market had shown its preference! She reminded Susan again of her recent increase in salary as further proof of the superiority of Silver Books.

Draft a short note for Susan to send to Lisa. Explain how such a result could occur.

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