1) Use Future Value and Present Value Tables to Apply Compound Interest to Accounting Transactions

Use Future Value Tables and Present Value Tables, or your calculator, to complete the requirement below.

app 3

Ed Walker wants to save some money so that he can make a down payment of $2,300 on a car when he graduates from college in 4 years.

Required:

If he opens a savings account and earns 3% on his money, compounded annually, how much will he have to invest now? Round your answer to the nearest cent, if rounding is required. $

2)Cornerstone Exercise 10-25 (Algorithmic) Recording the Sale of Common and Preferred Stock

chp 10 onahue Corporation is authorized by its charter from the state of Illinois to issue 750 shares of preferred stock with a 7% dividend rate and a par value of $50 per share and 22,000 shares of common stock with a par value of $0.01 per share. On January 1, 2019, Donahue Corporation issues 250 shares of preferred stock at $55 per share and 12,900 shares of common stock at $13 per share.

Required:

Prepare the journal entry to record the issuance of the stock.

5)

Eastern Inc.s equity includes 8%, $25 par preferred stock. There are 100,000 shares authorized and 45,000 shares outstanding. Assume that Eastern declares and pays preferred dividends quarterly.

Required:

1. Prepare the journal entry to record declaration of one quarterly dividend.

2. Prepare the journal entry to record payment of the one quarterly dividend.