Question
On January 1, 2017, Candlestick, Inc. sells $100,000, five-year, 10 % bonds for 92.639% of face value. On the other hand the same company sells
On January 1, 2017, Candlestick, Inc. sells $100,000, five-year, 10 % bonds for 92.639% of face value. On the other hand the same company sells 108.111% of face value on July 1, 2017. Pass the necessary journal entry for issuance of bonds. (3 Points)
A company is authorized to issue 800,000 shares of $6 par value common stock. Prepare journal entries to record the following selected transactions that occurred during the company's first year of operations: (3 Points)
| March. 8 | Sold 110,000 shares of common stock for $9 cash per share. |
| March 12 | Exchanged 12,000 shares of common stock for equipment with a market value of $90,000. |
Use the following calendar-year information to prepare Ibrahim Company's statement of cash flows using the direct method: (4 Points)
| Cash paid to purchase machinery | $ 124,000 |
| Cash paid for merchandise inventory | 220,000 |
| Cash paid for operating expenses | 280,000 |
| Cash paid for interest | 4,000 |
| Cash received for interest | 10,000 |
| Cash proceeds from sale of land | 100,000 |
| Cash balance at beginning of year | 15,000 |
| Cash balance at end of year | 77,000 |
| Cash borrowed on a short-term note | 25,000 |
| Cash dividends paid | 24,000 |
| Cash received from stock issuance | 57,000 |
| Cash collections from customers | 522,000 |
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