Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Citywide Company issues bonds with a par value of $65,000. The bonds mature in nine years and pay 10% annual interest in semiannual payments.

image text in transcribedimage text in transcribed

Citywide Company issues bonds with a par value of $65,000. The bonds mature in nine years and pay 10% annual interest in semiannual payments. The annual market rate for the bonds is 8 %. (Table B.1. Table B.2. Table 8.3, and Table B.4) Note: Use appropriate factor(s) from the tables provided. 1. Compute the price of the bonds as of their issue date. 2. Prepare the journal entry to record the bonds' issuance. Complete this question by entering your answers in the tabs below. Required 1 Required 2 Compute the price of the bonds as of their issue date. Note: Round intermediate calculations to the nearest dollar amount. Table Values are Based on: n= Cash Flow Table Value Amount Present Value Par (maturity) value Interest (annuity) Price of bonds $ Required 1 Required 2 > 0 Following are the issuances of stock transactions. 1. A corporation issued 5,000 shares of $10 par value common stock for $60,000 cash. 2. A corporation issued 2,500 shares of no-par common stock to its promoters in exchange for their efforts, estimated to be worth $26,500. The stock has a $1 per share stated value. 3. A corporation issued 2,500 shares of no-par common stock to its promoters in exchange for their efforts, estimated to be worth $26,500. The stock has no stated value. 4. A corporation issued 1,250 shares of $100 par value preferred stock for $151,500 cash. re journal entries to record each of the following four separate issuances of stock. ww transaction list ournal entry worksheet A B C D Record the issue of 5,000 shares of $10 par value common stock for $60,000 rach

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Financial Accounting an introduction to concepts, methods and uses

Authors: Clyde P. Stickney, Roman L. Weil, Katherine Schipper, Jennifer Francis

13th Edition

978-0538776080, 324651147, 538776080, 9780324651140, 978-0324789003

More Books

Students also viewed these Accounting questions