2) Happy Company issued 10,000 shares of its $5 par value common stock having a fair value of $25 per share and 15,000 shares of its $15 par value preferred stock having a fair value of $20 per share for a lump sum of $520,000. How much of the proceeds would be allocated to the common stock?

3) Fuzzy Inc. declared a $230,000 cash dividend. It currently has 12,000 shares of 5%, $100 par value cumulative preferred stock outstanding. It is one year in arrears on its preferred stock. How much cash will Fuzzy distribute to the common stockholders?

Silly Corporation issued $6,000,000 of 8% bonds on October 1, 2017, due on October 1, 2022. The interest is to be paid twice a year on April 1 and October 1. The bonds were sold to yield 10% effective annual interest. Silly Corporation closes its books annually on December 31 (a) Complete the following amortization schedule for the dates indicated. [Round all answers to the nearest dollar.] Use the effective-interest met hod Debit Credit Carrying Amount of Bonds $5,536,676 Credit Cash Interest Expense Bond Discount October 1, 2017 April 1, 2018 October 1, 2018 (b) Prepare the adjusting entry for December 31, 2018. Use the effective-interest method. Compute the interest expense to be reported in the income statement for the year ended December 31, 2018. (c)