Need by 10:40pm please?
The December 31, 2005, balance sheet of Far Imports includes the following items:
9% bonds payable due 12/31/2014 .............. $800,000
Discount on bonds payable .........................21,600
The bonds were issued on December 31, 2004, at 97, with interest
payable on June 30 and December 31 of each year. The straight-line
method is used for discount amortization.
On March 1, 2006, Far Imports retired $400,000 of these bonds at 98
plus accrued interest. Prepare the journal entries to record
retirement of the bonds, including accrual of interest since the last
payment and amortization of the discount.
2 a company received stock at $15 par value per share. During the
first year of operations, 40,000 shares were sold at $28 per share.
600 shares were issued in payment of a current operating debt of
$18,600. In the first year, the net income was $142,000.
During the year, dividends of $36,000 were paid to stockholders. At
the end of the year, total liabilities were $82,000. Use the given
data to compute the following items at the end of the first year (show
all computations):
(1) Total liabilities and stockholders' equity
(2) Stockholders' equity
(3) Contributed capital
(4) Issued capital stock (par)
(5) Outstanding capital stock (par)
(6) Unissued capital stock (number of shares)
(7) Paid-In capital in excess of par value
3.The following transactions relate to the stockholders' equity
transactions of Lindsay Corporation for its initial year of existence.
(a) Jan. 07
Articles of incorporation are filed with the state. The state
authorized the issuance of 10,000 shares of $50 par value preferred
stock and 200,000 shares of $10 par value common stock.
(b) Jan. 28
40,000 shares of common stock are issued for $14 per share.
(c) Feb. 03
80,000 shares of common stock are issued in exchange for land and
buildings that have an appraised value of $250,000 and $1,000,000,
respectively. The stock traded at $15 per share on that date on the
over-the-counter market.
(d)Feb. 24
2,000 shares of common stock are issued to Shane and Winston,
Attorneys-at-Law, in payment for legal services rendered in connection
with incorporation. The company charged the amount to organization
costs. The market value of the stock was $16 per share.
(e) Sep. 12
Received subscriptions for 10,000 shares of preferred stock at $53
per share. A 40 percent down payment accompanied the subscriptions.
The balance is due on October 1.
(f) Oct. 01
Received the final payment for 10,000 shares. |
