The transactions below took place during the year 2020. 1. Convertible bonds payable with a par value
Question:
The transactions below took place during the year 2020.
1. Convertible bonds payable with a par value of $300,000 were exchanged for unissued common stock with a par value of $300,000. The market price of both types of securities was par.
2. The net income for the year was $410,000.
3. Depreciation expense for the building was $90,000.
4. Some old office equipment was traded in on the purchase of some dissimilar office equipment, and the following entry was made.
The Gain on Disposal of Plant Assets was included in income before income taxes.
5. Dividends in the amount of $123,000 were declared. They are payable in January of next year.
Instructions
Show by journal entries the adjustments that would be made on a worksheet for a statement of cash flows.
Common StockCommon stock is an equity component that represents the worth of stock owned by the shareholders of the company. The common stock represents the par value of the shares outstanding at a balance sheet date. Public companies can trade their stocks on... Par Value
Par value is the face value of a bond. Par value is important for a bond or fixed-income instrument because it determines its maturity value as well as the dollar value of coupon payments. The market price of a bond may be above or below par,...
Step by Step Answer:
1 Bonds Payable 300000 Common Stock 300000 Noncash financi...View the full answer
Intermediate Accounting
ISBN: 978-1119503668
17th edition
Authors: Donald E. Kieso, Jerry J. Weygandt, Terry D. Warfiel
