Question
1. Foodmart, Inc. completed the following treasury stock transactions in 2018: Mar. 3 Purchased 1,800 shares of the company's $3 par value common stock as
1. Foodmart, Inc. completed the following treasury stock transactions in 2018:
Mar. 3 Purchased 1,800 shares of the company's $3 par value common stock as treasury stock, paying cash of $10 per share.
Mar. 17 Sold 400 shares of the treasury stock for cash of $12 per share.
Mar. 25 Sold 600 shares of the treasury stock for cash of $7 per share.
(Assume the balance in Paid-In Capital from Treasury Stock Transactions on March 24 is $ 1,200.)
Journalize these transactions. Explanations are not required.
2) On January 1, 2018, Western Services issued $20,000 of 8% bonds that mature in five years. The bonds were issued for $20,750. Prepare the journal entry to issue bonds. Omit explanation.
3) On January 1, 2019, Booth Sales issues $10,000 in bonds for $10,900. These are 5-year bonds with a stated rate of 4%, and pay semiannual interest. Booth Sales uses the straight-line method to amortize bond premium. Prepare the journal entry for the first interest payment on June 30, 2019. Omit explanation.
4) On July 1, 2019, Montana Company has bonds with balances as shown below.
Bonds Payable
| 70,000 |
|
|
Discount on Bonds Payable
3600 |
|
|
|
If the company retires the bonds for $71,150, what will be gain or loss on the retirement.
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