How does this entry affect the accounting equation? If a financial statement item is not affected, select "No Entry" and leave the amount box blank. If the effect on a financial statement item is negative, i.e, a decrease, be sure to enter the answer with a minus sign. Balance Sheet Income Statement Stockholders' Assets Liabilities Equity Revenues Expenses Feedback Check My Work Incorrect 2. Assume that the company resold the shares of treasury stock at $28 per share on October 1. The resale price of the treasury stock is $72,800, which when compared to its original cost, yielded in the account. in the amount of $ This is shown on the balance sheet as an) Feedback How does this entry affect the accounting equation? If a financial statement item is not affected, select "No Entry" and leave the amount box blank. If the effect on a financial statement item is negative, i.e, a decrease, be sure to enter the answer with a minus sign. Balance Sheet Income Statement Stockholders' Assets Liabilities + Equity Revenues Expenses Cash 40,000 X No Entry Treasury Stock No Entry 0 No Entry Feedback Check My Work Partially correct b. Reacquired 600 shares of common stock at $18 per share on August 1. Activity Accounts Statement(s) Factors That Affect the Bond Issue Price RIVERE ENTERPRISES is considering the issue of $101,000 face value, ten-year term bonds. The bonds will pay 6% interest each December 31. The current market rate is 6%; therefore, the bonds will be issued at face value. Required: 1. For each of the following situations, indicate whether you believe the company will receive a premium on the bonds or will issue them at a discount or at face value. a. Interest is paid semiannually instead of annually. b. Assume instead that the market rate of interest is 7%; the nominal rate is still 6%. 2. For each situation in part (1), prove your statement by determining the issue price of the bonds given the changes in (a) and (b). Do not round intermediate computation and round your final answer to the nearest dollar. Here are some time value of money factors: Present value of an annuity, n=10, i=7%, PV=7.02358 Present value of an annuity, n=20, i=3%, PV=14.87747 Present value of a single amount, n=10, i=7%, PV=0.50835 Pre value of a single amount, n=20, i=3%, PV=0.55368 Proof: Bond Price a. b. How does this entry affect the accounting equation? If a financial statement item is not affected, select "No Entry" and leave the amount box blank. If the effect on a financial statement item is negative, i.e, a decrease, be sure to enter the answer with a minus sign. Balance Sheet Income Statement Stockholders' Assets Liabilities Equity Revenues Expenses Feedback Check My Work Incorrect 2. Assume that the company resold the shares of treasury stock at $28 per share on October 1. The resale price of the treasury stock is $72,800, which when compared to its original cost, yielded in the account. in the amount of $ This is shown on the balance sheet as an) Feedback How does this entry affect the accounting equation? If a financial statement item is not affected, select "No Entry" and leave the amount box blank. If the effect on a financial statement item is negative, i.e, a decrease, be sure to enter the answer with a minus sign. Balance Sheet Income Statement Stockholders' Assets Liabilities + Equity Revenues Expenses Cash 40,000 X No Entry Treasury Stock No Entry 0 No Entry Feedback Check My Work Partially correct b. Reacquired 600 shares of common stock at $18 per share on August 1. Activity Accounts Statement(s) Factors That Affect the Bond Issue Price RIVERE ENTERPRISES is considering the issue of $101,000 face value, ten-year term bonds. The bonds will pay 6% interest each December 31. The current market rate is 6%; therefore, the bonds will be issued at face value. Required: 1. For each of the following situations, indicate whether you believe the company will receive a premium on the bonds or will issue them at a discount or at face value. a. Interest is paid semiannually instead of annually. b. Assume instead that the market rate of interest is 7%; the nominal rate is still 6%. 2. For each situation in part (1), prove your statement by determining the issue price of the bonds given the changes in (a) and (b). Do not round intermediate computation and round your final answer to the nearest dollar. Here are some time value of money factors: Present value of an annuity, n=10, i=7%, PV=7.02358 Present value of an annuity, n=20, i=3%, PV=14.87747 Present value of a single amount, n=10, i=7%, PV=0.50835 Pre value of a single amount, n=20, i=3%, PV=0.55368 Proof: Bond Price a. b.
