Please complete at least 6 of the following 8 questions in the attachment and send the answers back to me. Thank you. This is for an Intermediate II college class.

Intermediate Accounting II Final Exam Spring, 2014 Name: Problem 1 2 3 4 5 6 7 8 Total Olga Lunina Description Acquisition Valuation Bond Market Value Amortization Stock Dividends Bond Journal Entries Investment Journal Entries Stock Journal Entries Points 10 10 10 25 25 25 20 25 150 Earned 0 1. Sporting Goods Company purchased Outdoor Goods Company for $600,000 cash. A schedule of the market values of Outdoor Good's assets and liabilities as of the purchase date follows: Outdoor Goods Company Schedule of Asset and Liability Market Values Assets Cash Receivables Inventory Land, buildings, and equipment Total $ 5,000 76,000 88,000 436,000 $ 605,000 Liabilities Current liabilities Long-term debt Total $ 70,000 100,000 170,000 Net asset market value $ 435,000 1. Make the journal entry necessary for Outdoor Goods Company to record the purchase. Goodwill Net Identifiable Assets Cash 165,000 435,000 600,000 2. Assume that the purchase price is $350,000 cash. Make the journal entry necessary to record the purchase. Net Identifiable Assets 350,000 Cash 350,000 2. On May 1, Lenny Corporation purchased for $700,000 a tract of land on which a warehouse and office building were located. The following data were collected concering the property: Current Assessed Valuation Land Warehouse Office Building $ $ 250,000 330,000 225,000 805,000 Vendor's Original Cost $ $ 185,000 312,000 144,000 641,000 Determine the appropriate amounts that Lenny should record for the land, warehouse, and office building. A journal entry is not needed. Land Warehouse Office Building 217,391 286,957 % 217391 286,957 195,652 3. What is the market value of each of the following bond issues? Coupon Face value Life (years) Interest payable (times per year): Effective rate: Market Value = Show Calculations Below Bond A Bond B Bond C 10% 12% 8% $ 500,000 $ 1,000,000 $ 650,000 10 15 20 2 4 12 10% 8% 10% 4. Information related to your companies bond issuance on 1/1/14 is below: Calculate the PV of maturity value, PV of annuity, total issue price, and the discount or premium. Finally, complete the amortization schedule below. Par Value Stated Rate Yield Rate Bond Term Semiannual payments $ 200,000.00 6.00% 8.00% 3 years 2 Per Year PV of maturity value PV of annuity Total Issue Price Face amount of bonds Discount/Premium BEGINNING BOOK VALUE PAYMENT Initial offering carrying value 1 2 3 4 5 6 CASH PAID INTEREST EXPENSE Disc/Prem AMORTIZED ENDING BOOK VALUE Show initial carrying value of bond here. 5. Anderson Company paid dividends at the end of each year as follows: 2012 $ 180,000 2013 $ 260,000 2014 $ 600,000 Determine the amount of dividends per share paid on common and preferred stock for each year assuming independent capital structures as follows: A) Common: Preferred: 300,000 shares of no- par common 10,000 shares of $100 par, 9% noncumulative preferred B) Common: Preferred: 250,000 shares of no-par common 20,000 shares of $100 par 9% noncumulative preferred C) Common: Preferred: 250,000 shares of no-par common 20,000 shares of $100 par 9% cumulative preferred D) Common: Preferred: 250,000 shares of $1 par common 30,000 shares of $100 par 9% cumulative preferred 2012 A) Preferred Stock Common Stock B) Preferred Stock Common Stock C) Preferred Stock Common Stock D) Preferred Stock Common Stock 2013 2014 6. On January 1, 2014, Buer Company issued 500 10 year bonds with $1,000 face value for each bond at 102. Interest is payable on January 1 and July 1 at 10%. On April 1, 2015, Buer Company reacquires and retires 50 of its own $1,000 bonds at 98 plus accrued interest. The fiscal period for Buer Company is the calendar year. Required: Prepare entries to record A) The issuance of the bonds, B) the interest payments and adjustments relating to the debt in 2014, and C) the reacquisition and retirement of bonds in 2015. Assume the premium or discount is amortized on a straight line basis. Debit Credit A) Issuance of the bonds 1/1/2014 B) Interest payments during 2014 6/30/2014 12/31/2014 C) Reacquisition of the bonds in 2015 4/1/2015 * 7. During January 2014, Aerogem purchased the following securities Security Gimli Corporation stock Legolas International Inc stock Glorfindel Enterprises stock Mirkwood Co bonds U.S. Treasury bonds Classification Trading Available for sale Available for sale Held to maturity Trading # of Shares 500 1,000 2,500 Total Cost $ 9,000 $ 22,000 $ 42,500 $ 24,000 $ 11,000 During 2014, Aerogem received interest from Mirkwood and the U.S. Treasury totaling $3,630. Dividends received on the stock held amounted to $1,760. During November 2014, Aerogem sold 200 shares of the Gimli stock at $17 per share and 250 shares of the Glorfindel stock at $19 per share. Give the journal entries required by Aerogem to record the (1) purchase of the debt and equity securities; (2) receipt of interest and dividends during 2014, and (3) sale of the equity securities during November. Gains and Losses s/b recorded in seperate accounts. Debit 1) Purchase of the securities 2) Receipt of interest and dividends 3) Sale of securities Credit 8. Habenero Company is authorized to issue 100,000 shares of $2 par value common stock. Habenero has the following transactions within the same year: 1. Issued 20,000 shares at $30 per share; received cash. 2. Issued 250 shares to attorneys for services in securing the corporate charter and for preliminary legal costs of organizing the corporation. The value of the sevices was $9,000 3. Issued 300 shares, valued objectively at $10,000 to the employees instead of paying them wages. 4. Issued 12,500 shares of stock in exchange for a building valued at $295,000 and land valued at $80,000. (The building was originally acquired by the investor for $250,000 and has $100,000 of accumulated depreciation; the land was originally acquired for $30,000). 5. Received cash for 6,500 shares of stock sold at $38 per share. 6. Issued 4,000 shares at $45 per share; received cash. Make the journal entries necessary for Habenero Company to record each transaction. Debit Entry 1 Entry 2 Entry 3 Entry 4 Entry 5 Entry 6 Credit