Please assist me with coming up with the solutions for the questions on the attached spreadsheet. Thanks in advance!

Homework #1 ACCT 221 Multiple Choice Questions Select the best answer for the following questions. Question 1 1 A corporation has the following account balances: Common Stock, $10 par value, $740,000; Paid-in Capital in Excess of Par, $1,850,000. Based on this information, the _______________. legal capital is $2,590,000 shares issued are 1,850,000 shares outstanding are 740,000 legal capital is $740,000 Question 2 On January 2, 2015, Easton Corporation issued 50,000 shares of 5% cumulative preferred 2 stock at $100 par value. No dividends have been paid to any shareholders since the formation of the corporation. Management wants to issue a dividend to common shareholders on December 31, 2016. What dividend amount, if any, must be paid to the preferred stockholders entitled before any distribution is made to common stockholders? $0 $500,000 $250,000 $125,000 Question 3 The Frederick Company has 100,000 shares of $5 par common stock outstanding. Management declares (not pays) a 10% stock dividend. The market value of a share of common stock was $32 immediately prior to the stock dividend declaration. The journal entry is: debit retained earnings, $320,000; credit stock dividend distributable, $10,000; credit paid in capital in excess of par, $310,000. debit retained earnings, $320,000; credit stock dividend distributable, $50,000; credit paid in capital in excess of par, $270,000. debit stock dividends distributable, $320,000; credit common stock, $320,000. debit stock dividends distributable, $50,000; credit common stock, $50,000. Question 4 The Frederick Company has 100,000 shares of $5 par common stock outstanding. Management PAYS (not declares) a 10% stock dividend. The market value of a share of common stock was $32 immediately prior to the stock dividend declaration. The journal entry is: debit retained earnings $320,000; credit stock dividend distributable $10,000; credit paid in capital in excess of par $$310,000. debit retained earnings $320,000; credit stock dividend distributable $50,000; credit paid in capital in excess of par $$270,000. debit stock dividends distributable $320,000; credit common stock $320,000. debit stock dividends distributable $50,000; credit common stock $50,000. Question 5 Cambridge Hat Company previously purchased 20,000 shares of treasury stock on the open market for $12 per share. Later, the company resells 10,000 shares for $14 per share. What is the journal entry for the sale? debit cash, $140,000; credit treasury stock, $120,000; credit additional paid-in capitaltreasury stock, $20,000 debit cash, $140,000; credit treasury stock, $140,000 debit cash, $140,000; credit treasury stock, $20,000; credit additional paid-in capital, $120,000 debit cash, $140,000; credit treasury stock, $120,000; credit retained earnings, $20,000 Question 6 6 Smith Ventures Inc. purchased 10% of the outstanding stock of Jones Company. Smith paid $15 per share to acquire 8,000 shares and will treat this purchase as available-for-sale securities. Par value of the stock is 50 cents. Smith uses a calendar year, and on December 31, the market value of Jones stock is $17 per share. What is the entry Smith needs to make on December 31? debit unrealized gain on available-for-sale securities, $16,000; credit available-for-sale securities, $16,000. no entry is required because the stock has not been sold. debit available-for-sale securities, $16,000; credit unrealized gain on available-for-sale securities, $16,000. debit available-for-sale securities, $8,000; credit unrealized gain on available-for-sale securities, $8,000. Question 7 Richmond Corporation has issued an outstanding common stock of 50,000 shares, $5 7 par value. On July 1, the company pays a 2-for-1 stock split. What are the legal capital and the par value of the stock immediately after the split? Legal capital, $250,000; par value, $5. Legal capital, $250,000; par value, $2.50. Legal capital, $125,000; par value, $5. Legal capital, $500,000; par value, $2.50. Question 8 On January 10, Acme Ventures Inc. purchased 30% of the outstanding stock of Gamma 8 Ray Manufacturing Corp. The purchase was 30,000 shares at $10 per share. Acme received dividends from Gamma Ray in the amount of $15,000 on June 15 and again on December 15. Gamma reported net income for the year ended December 31 in the amount of $250,000. What is the journal entry, if any, that Acme needs to make dated December 31? No entry on December 31 because the dividends were paid on different dates. Debit investment in Gamma Ray Corp., $45,000; credit income from Gamma Ray Corp., $45,000. Debit investment in Gamma Ray Corp., $75,000; credit income from Gamma Ray Corp., $75,000. Debit investment in Gamma Ray Corp., $75,000; credit income from Gamma Ray Corp., $45,000; credit dividends income, $30,000. Question 9 High Adventure Corp. issues $100,000 of 7%, 10-year bonds for 98. High Adventure uses 9 the straight-line method to amortize any bond discounts or premiums. The bonds pay interest semiannually. On the maturity date of the bond, what is the journal entry for the final interest payment and the redemption of the bonds? Debit bonds payable, $98,000; debit interest expense, $3,600; credit cash, $101,500; credit discount on bonds payable, $100. Debit bonds payable, $100,000; debit interest expense, $3,500; credit cash, credit cash $103,500. Debit bonds payable, $100,000; debit interest expense, $3,430; credit cash, $103,430. Debit bonds payable, $100,000; debit interest expense, $3,600; $103,500; credit discount on bonds payable, $100. Question 10 On January 1, 2016, Towson Inc. issued $500,000, 20-year, 6% bonds at 101. Interest is 10 payable semiannually on January 1 and July 1. The journal entry to record this transaction on January 1, 2016, is: debit cash, $500,000; credit bonds payable, $500,000. debit cash, $505,000; credit bonds payable, $505,000. debit cash, $500,000; debit premium on bonds payable, $5,000; credit bonds payable, $505,000. debit cash, $505,000; credit bonds payable, $500,000; credit premium on bonds payable, $5,000. *Prepare the journal entries for questions 11-13 at the bottom of the page. Descriptions are not required. Journal Entries Question 11 Salisbury Corporation formed a corporation on January 3, 2016, and is authorized to issue 500,000 shares of $10 par value common stock. The company has the following stock transactions. 1/10/2016 - Issued 200,000 shares of stock at $16 per share. 1/25/2016 - The law firm that helped the company incorporate and file all forms for the stock issue accepts 1,000 shares of newly issued stock in lieu of cash for its legal bill rendered. The amount of the legal bill was $20,000. 6/10/2016 - Salisbury Corporation declares a 50 cent per share dividend payable July 15 to shareholders of record as of June 30, 2016. 6/30/2016 - The record date for the dividend declared on June 10. 7/15/2016 - The dividend declared on June 10 is paid. 9/15/2016 - Salisbury Corporation declares a 10% stock dividend payable on September 30 to shareholders of record as of September 20. The market value of the stock was $15 immediately prior to the declaration of the stock dividend. 9/30/2016 - The stock dividend declared on September 15 is paid. 10/15/2016 - Salisbury Corporation buys 5,000 shares of its own stock on the open market for $18 per share. 12/18/2016 - Salisbury Corporation resells 2,000 shares of the treasury stock for $20 per share. Instructions: Journalize the above transactions for Salisbury Corporation. Question 12 On July 1, 2016 Alpha Company sells $1,000,000 face value of 10% five year bonds which call for semiannual interest payments. The bonds are dated April 1, 2016 so these bonds are issued between interest dates. The market rate at the date of issue is also 10%. For simplicity, use a 360-day year and 3 day months for all calculations. 1. Record the journal entries for the issuance of the bonds 2. Record the journal entries for the first interest payment due on October 1, 2016. Assume that interest has not been accrued at each month end. Question 13 On April 1, 2016 Alpha Company sells $1,000,000 face value of 10% five year bonds which call for semiannual interest payments. The bonds are dated April 1, 2016 so these bonds are issued on an interest date. The market rate at the date of issue is 8%. Use the straight line method of amortization of any bond premium or discount. For simplicity, use a 360-day year and 30 day months for all calculations. 1. Record the journal entries for the issuance of the bonds 2. Record the journal entries for the first interest payment due on October 1, 2016. Assume that interest has not been accrued at each month end