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Please help me out and answer them all, ill make sure to thumbs up. Thank you and have a good day! Entries for Issuing Bonds
Please help me out and answer them all, ill make sure to thumbs up. Thank you and have a good day!
Entries for Issuing Bonds and Amortizing Discount by Straight-Line Method On the first day of its fiscal year, Chin Company issued $29,200,000 of five-year, 9% bonds to finance its operations of producing and selling home improvement products. Interest is payable semiannually. The bonds were issued at a market (effective) interest rate of 11%, resulting in Chin receiving cash of $26,999,002. a. Journalize the entries to record the following: 1. Issuance of the bonds. 2. First semiannual interest payment. The bond discount is combined with the semiannual interest payment. (Round your answer to the nearest dollar.) 3. Second semiannual interest payment. The bond discount is combined with the semiannual interest payment. (Round your answer to the nearest dollar.) If an amount box does not require an entry, leave it blank. Round your answers to the nearest dollar. 1. Cash 26,999,002 0 Discount on Bonds Payable 2,200,998 0 Bonds Payable 0 29,200,000 2. Interest Expense 0 Discount on Bonds Payable 0 Cash 0 1,314,000 3. Interest Expense 0 Discount on Bonds Payable 0 Cash 0 Feedback Check My Work b. Determine the amount of the bond interest expense for the first year. c. Why was the company able to issue the bonds for only $26,999,002 rather than for the face amount of $29,200,000? The market rate of interest is greater than the contract rate of interest. Therefore, inventors are not willing to pay the full face amount of the bonds. Dividends Per Share Oceanic Company has 10,000 shares of cumulative preferred 3% stock, $50 par and 50,000 shares of $15 par common stock. The following amounts were distributed as dividends: Year 1 $37,500 Year 2 7,500 Year 3 45,000 Determine the dividends per share for preferred and common stock for each year. Round all answers to two decimal places. If an answer is zero, enter 'o'. Preferred Stock (dividends per share) Common Stock (dividends per share) Year 1 $ 1.5 $ Year 2 0.75 $ 0 Year 3 $ $ Dividends Per Share Seventy-Two Inc., a developer of radiology equipment, has stock outstanding as follows: 80,000 shares of cumulative preferred 3% stock, $20 par, and 405,000 shares of $25 par common. During its first four years of operations, the following amounts were distributed as dividends: first year, $34,000; second year, $72,000; third year, $80,000; fourth year, $120,000. Calculate the dividends per share on each class of stock for each of the four years. Round all answers to two decimal places. If no dividends are paid in a given year, enter "0.00". 1st Year 2nd Year 3rd Year 4th Year Preferred stock (dividends per share) 0 $ 0 Common stock (dividends per share) S 0 $ 0Step by Step Solution
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