Westions (88 points. 22 Marienplatz. Corp. issues S5.960.000.- 2017. The bonds pay interest semiannually yield 4%. What are the proceeds from the Points: 22 questions at 4 points Present value of a single sum for 5 perico Present value of a single sum for 10 per Present value of an annuity for 5 periods Present value of an annuity for 10 period Sat 4 points cach) S-year bonds dated January 1, 2017 on January 1. June 30 and December 31. The bonds are issued to Anually on June 30 and De in the bond issue? ods 2.00% 2.50% 4% 5% 0.905731 0.88385 0.82193 0.78353 0.82035 0.7814 78121 0.67556 0.61391 4.713461 4.64583 4.45182 4.32948 8.982591 8.75206 8.1109 7.72173 a $5,285,769 b. $5,284,954 c. S5,060,000 d. $5,287,269 ds (2) Fubler Industries issues $19.500,000 of 10-> accrued interest. The bonds are dated January 31. What is the total cash received on the issue dat of 10-year, 12 bonds on March 1, 2017 at 98 plus anuary 1, 2017. and pay interest on June 30 and December a $20,475,000 b. $19,110,000 c. $18,900,000 d. $19,500,000 (3) On October 1, 2017 McElroy Corporation issued 59 $6,080,000 at 105. Interest is paid on October 1 and April amortized on a straight-line basis. The entry to recor credit of y Corporation issued 5%, 10-year bonds with a face value of is paid on October 1 and April 1. with any premiums or discounts "ant-line basis. The entry to record the issuance of the bonds would include a a. $304,000 to Discount on Bonds Payable. b. $5,776,000 to Bonds Payable. c. $304,000 to Premium on Bonds Payable. d. $152,000 to Interest Payable (4) At December 31, 2017 the following balances existed on the books of Axworthy Corp: Bonds Payable $6,000,000 Discount on Bonds Payable $840,000 on January 1, 2018, at 102, what will Foxworth report as a gain or If the bonds are reacquired on January 1, 2018, at 107 loss on redemption? a. $840,000 gain b. $960,000 loss c. $120,000 loss d $960,000 gain (9) Wasserstein Industries has 502.000 shares of S10 par value common stock outstanding During the year Wasserstein declared a 13. stock dividend when the market price of the stock was $36 per share. Three months later Wasserstein declared a 50.00 per share cash dividend. As a result of the dividends declared durine the year, retained earnings decreased by a $496,980 b. $2,349,360 c. $2,689,716 d. $473,300 (10) On July 1, 2018, $150,000 of Polka Co. convertible bonds were converted into 3,000 shares of Polka Co. common stock each having a par value of $45 and a market value of $54. There was $6,000 unamortized discount on the bonds at the time of conversion. Using the book value method, Polka would record a. no change in paid-in capital in excess of par. b. a $9.000 increase in paid-in capital in excess of par. c. a $18,000 increase in paid-in capital in excess of par. d. a $12.000 increase in paid-in capital in excess of par. (11) In 2017, Ewe, Inc., issued for $102 per share, 86,500 shares of $100 par value convertible preferred stock. One share of preferred stock can be converted into three shares of Ewe's $20 par value common stock at the option of the preferred stockholder. In August 2018, all of the preferred stock was converted into common stock. The market value of the common stock at the date of the conversion was $25 per share. Using the book value method, what total amount should be credited to "Paid-in Capital in Excess of Par - Common" as a result of the conversion of the preferred stock into common stock? a. $3,460,000 b. $2,643,000. c. $2,335,500. d. $3,633,000 (12) Validus Corporation offered detachable 5-year warrants to buy one share of common stock (par value $5) at $20 (at a time when the stock was selling for $34). The price paid for 900, $1,000 bonds with the warrants attached was $823,000. The market price of the Validus bonds without the warrants was $710,000, and the market price of the warrants without the bonds was $80,500. What amount should be allocated to the warrants? a. $80,500 b. $98,500 c. $103,000 d. $83,810 A B C D E A B C D E A m (5) On October 1, 2017 Barthel Corporation issued 5%, 10-year bonds with a face value of $8,000,000 at 104. Interest is paid on October 1 and April 1, with the premium amortired on a straight-line basis Bond interest expense reported on the December 31, 2017 income statement of Barthel Corporation would be SIO DO SIN 000 c. 592.000 dS100 000 (6) Mannheim Company issued 10.000 shares of its $5 par value common stock having a fair value of $25 per share and 15.000 shares of its SIS par value preferred stock having a fair value of $20 per share for a lump sum of 5520,000. How much of the proceeds would be allocated to the common stock? a $250.000 b. 5236,364 c. $283.636 d. $276.250 (7) Creole Company issued 100,000 shares of $10 par common stock for $1,100,000. A year later Creole acquired 15,500 shares of its own common stock at $14 per share. Three months later Creole sold 7.500 of these shares at $18 per share. The cost method is used to record treasury stock transactions. To record the sale of the 7,500 treasury shares, Creole should credit a. Treasury Stock for $105,000 and Paid-in Capital from Treasury Stock for $30,000 b. Treasury Stock for $75,000 and Paid-in Capital from Treasury Stock for $60,000. c. Treasury Stock for $105,000 and Paid-in Capital in Excess of Par for $30,000 d. Treasury Stock for $135.000. (8) On January 1, 2018, Dai, Inc., declared a 10% stock dividend on its common stock when the fair value of the common stock was $32 per share. Stockholders' equity before the stock dividend was declared consisted of: Common stock, SIO par value, authorized 200,000 shares issued and outstanding 111,000 shares Additional paid in capital on common stock Retained earnings Total stockholders' equity $1,110,000 $149,000 $715,000 $1.974,000 What was the effect on Dai's retained earnings as a result of the above transaction? a. $355,200 decrease b. $577,200 decrease c. $288,600 decrease d. $111.000 decrease