VI. Problem (18 points) Instructions: Solve the following problems and record the answers in the Answers column.

The amount debited to the investment account when S. Co. acquires 80% of the common stock of V Co. for $300,000 cash $300,000

The stockholders equity of a corporation is composed of: Preferred stock-5% cumulative or $5.00 per year, $100 par value. 6,000 shares are issued and outstanding $600,000; Paid-in capital in excess of par- Preferred Stock, $50,000; Common Stock, $20 par, $1,000,000; 50,000 shares outstanding, Paid-in capital in excess of par-common stock, $120,000; 1/1 Retained Earnings is $20,000 and after closing out the net income of $60,000, and before any dividends paid it is $80,000.

The total paid-in capital (par value plus paid-in capital) attributable to preferred stock is

The total paid-in capital (par value plus paid-in capital) attributable to common stock is

The current years preferred stock 5% cash dividend, (no dividends were in arrears) is

The total amount of retained earnings available for common stock cash dividends after payment to the preferred shareholders is

On January 2, 2016 Jones Co. purchases 30% of the 10,000 shares of $20 par common stock of IBM Co. at 17. The amount debited to the Investment in IBM Co. Stock is:

Jones Co. redeemed Bonds Payable at 101 (101%). The bonds have a face value of $500,000, unamortized discount on bonds payable of $15,000, and accrued interest of $10,000. What is the total cash paid?

Will Jones record a gain or loss on the bond redemption in entry 6?

The amount of the gain or loss recognized in Question 8 is..

On April 1, 2016 IBM Co. issued $4,000,000, 5-year, 12% bonds for $4,200,000. If the bonds pay interest semiannually and if the effective interest rate is 10%, determine the following in 10-11-12:

The six months interest paid ($4,000,000 x 6% on September 30 is

The amount of premium amortized on December 31,2016 for (9 months) using the straight-line amortization method-$200,000/5 years and in year 1 there is 9 months.

The Interest payable for 3 months on December 31, 2012 is

When cash is set aside in a special fund for the purpose of paying the face value of bonds payable at maturity, the special fund is called a

If the Bonds Payable account has a balance of $5,000,000 and Premium on Bonds Payable has a balance of $45,000, what is the carrying amount of the bonds

Record the journal entry in entry #11 for the six month interest payment on September 30, 2016.

Record the adjusting journal entry for entry #11 on 12/31/16 assuming the straight-line amortization method for the entire nine months.

7. Record the adjusting entry for three months accrued interest payable on 12/31/16 ($240,000 is the semiannual interest paid) in entry #12.