Question 1 The Candlestick Inc. Issues 100, five-year, 10%, $ 1,000 bonds dated January 1, 2014, at 105. On January 1, 2019, Candlestick records the redemption of its bonds with face value $100,000 at maturity. Assume at the end of the third period, Candlestick Inc., having sold its bonds at a premium, retires the bonds at 101 after paying the annual interest. Assume that the carrying value of the bonds at the redemption date is $102,000 (principal $100,000 and premium $2,000). (a) What amount of the gain/loss for Candlestick to redeem at the end of third period? (b) Prepare journal entry for the Candlestick when it records the redemption at the end of the third period (January 1, 2017).

Question 2 Tidewell Corporation was organized on January 1, 2014. It is authorized to issue 20,000 shares of 6%, $ 50 par value preferred stock and 500,000 shares of no-par common stock with a stated value of $ 1 per share. The following stock transactions were completed during the first year. Jan 10 Issued 70,000 shares of common stock for cash at $ 4 per share. Mar 1 Issued 12,000 shares of preferred stock for cash at $ 53 per share. Instructions: Prepare the paid-in capital section of the stockholders equity section at December 31, 2014.

Question 3 The stockholders equity section of Maley Corporations balance sheet consists of common stock ($8 par) $1,000,000 and retained earnings $ 300,000. A 5% stock dividend (6,250 shares) is declared when the market price per share is $ 10. Show the before-and after effects of the dividend on (a) the components of stockholders equity and (b) the shares outstanding.