Question 6 (6 points) Gamma Corp. issued $100,000 of its own 10%, 12-year bonds on their date of issue, January 1, 2019 for $115,247, a price which yielded the buyers an 8% effective rate (market rate). Interest was payable each June 30 and December 31. Gamma Corp. uses the Effective Interest Method to amortize premiums and discounts. Please enter debits or credits in a comma and no decimals format as illustrated here - 170,000 Prepare the journal entry for Gamma Corp. related to the issue of the bonds on January 1, 2019 Account # Account Debit Credit Question 7 (5 points) Gamma Corp. issued $100,000 of its own 10%, 12-year bonds on their date of issue, January 1, 2019 for $115,247, a price which yielded the buyers an 8% effective rate (market rate). Interest was payable each June 30 and December 31. Gamma Corp. uses the Effective Interest Method to amortize premiums and discounts. Please enter debits or credits in a comma and no decimals format as illustrated here - 170,000 Prepare the journal entry for Gamma Corp. for the first interest payment on June 30, 2019 Account # Account Debit Credit Question 8 (5 points) Gamma Corp. issued $100,000 of its own 10%, 12-year bonds on their date of issue, January 1, 2019 for $115,247, a price which yielded the buyers an 8% effective rate (market rate). Interest was payable each June 30 and December 31. Gamma Corp. uses the Effective Interest Method to amortize premiums and discounts. Please enter debits or credits in a comma and no decimals format as illustrated here - 170,000 Prepare the journal entry for Gamma Corp. for the second interest payment on December 31, 2019 Account # Account Debit Credit Question 9 (10 points) Choose from the following account balances for Baylor, Inc. to create the Stockholders' Equity section of the Balance Sheet for its year ended December 31, 2019 financial statements, in good form. Cash Dividends Declared Common Stock, $10 par Net Income PIC in Excess of Par, Common Stock PIC in Excess of Par, Preferred Stock 72,000 PIC from Sale of Treasury Stock, Common 400,000 Preferred 4% Stock, $50 Par 200,000 Retained Earnings, December 31, 2019 120,000 Treasury Stock, Common 100,000 150,000 250,000 2,000,000 300,000 Stockholders' Equity Question 10 (2 points) Ajax, Inc. declared a 10% stock dividend of 10,000 shares to be distributed on July 1. The par value per share is $10, and the market value was $20 on the date of declaration. How will declaring and issuing the stock dividend affect the total amount of stockholders' equity? a) $100,000 increase Ob) $100,000 decrease O c) $200,000 increase O d) $200,000 decrease Oe) no effect 105 201 301 341 342 343 351 Cash Land Accounts Payable Bonds Payable Discount on Bonds Payable Premium on Bonds Payable Cash Dividends Payable Common Stock Distributable Retained Earnings Cash Dividends Declared 532 Stock Dividends Declared 540 Common Stock, $10 par 541 Paid-In-Capital in Excess of Par, Common Stock 550 Preferred 4% Stock, $50 Par 551 Paid-In-Capital in Excess of Par, Preferred Stock 561 Paid-In-Capital from Sale of Treasury Stock, Common 570 Treasury Stock, Common 719 Interest Expense 999 No entry 352 530 531
