Question 1

The following information was available about Helper Industries On 31,December, 2016. Contributed capital:

There were 78,000 common shares issued during 2017 at $6.50 per share. Also, during 2017, cash dividends declared and paid totaled $520,000 and net income was $800,000.

Required:

"Prepare a" statement of changes in equity for the year ended December 31, 2017.

Question 2

Subaru Company issued $700,000 par value, 10-year 6% bonds on July 1, 2017, when the market rate was 8%. Interest is paid on June 30 and December 31 of each year. Note: Found your answers to the nearest dollar.

Required:

a) Have these bonds been issued at par, at a discount, or at premium?

b) Calculate the bond price on the issue date. Present Value tables are on the last page of this exam. (Round your answer to the nearest whole dollar)

c) How much total bond interest expense will be recognized over the life of these bonds?

Question 3

Hopeful, Wordsmith and Zoe are partners with capital balances as follows:

Hopeful, S194,000, Wordsmith, $128,000 and Zoe $90,000. They share income and losses in the ratio 1:3:2 respectively.

On June 15, 2017

Hopeful decides to withdraw from the partnership and is paid $176,0O0 in partnership cash for his equity.

Required:

Prepare the general journal entry to record the June 15, 2017, withdrawal of Hopeful from the partnership.