Ask Question, Ask an Expert

+1-415-315-9853

info@mywordsolution.com

Ask Accounting Basics Expert

problem 1: On December 31, 20x7, the Jill Corporation issued $20,000,000 of 15 year face value bonds. The bonds pay interest on June 30 and December 31 of every year. The coupon rate is 7.8% and the yield to maturity is 8.4%. 
 
a) What are the proceeds received on the bond issue on December 31, 20x7?
b) Prepare the journal entries for the year 20x8 to record the bond issue and interest expense.
c) Repeat (a) and (b) assuming that the yield to maturity is 7%.
 
problem 2: The XYZ Company, based on increasing demand is planning an expansion. To facilitate this the company has issued the following two bond issues:

1517_bond issues.jpg

What is the issue price for Bond A and B?

problem 3: Howard Corporation is a publicly owned company whose shares are traded on the TSE. At December 31, 20x4, Howard had unlimited shares of common shares authorized, of which 15,000,000 shares were issued. The shareholders' equity accounts at December 31, 20x4, had the following balances:
 
Common shares (15,000,000 shares)   $230,000,000 
Retained earnings                            50,000,000
 
During 20x5, Howard had the following transactions:
 
a) On February 1, a distribution of 2,000,000 common shares was completed. The shares were sold for $18 per share.

b) On February 15, Howard issued, at $110 per share, 100,000 of no-par value, $8, cumulative preferred shares.

c) On March 1, Howard reacquired and retired 20,000 common shares for $14.50 per share.

d) On March 15, Howard reacquired and retired 10,000 common shares for $20 per share.

e) On March 31, Howard declared a semi-annual cash dividend on common shares of $0.10 per share, payable on April 30, 20x5, to shareholders of record on April 10, 20x5. (Record the dividend declaration and payment.)

f) On April 15, 18,000 common shares were reacquired and retired for $17.50 per share.

g) On September 30, Howard declared a semi-annual cash dividend on common shares of $0.10 per share and the yearly dividend on preferred shares, both payable on October 30, 20x5, to shareholders of record on October 10, 20x5.

(Record the dividend declaration and payment.)
 
Required: Prepare journal entries to record the various transactions. Round per share amounts to two decimal places.

Accounting Basics, Accounting

  • Category:- Accounting Basics
  • Reference No.:- M91045

Have any Question? 


Related Questions in Accounting Basics

Problem 1pringle corporation has been authorized to issue

Problem 1: Pringle Corporation has been authorized to issue 23,300 shares of $100 par value, 8%, noncumulative preferred stock and 1,007,600 shares of no-par common stock. The corporation assigned a $4 stated value to th ...

Careers in accountingaccounting is the study of how

Careers in Accounting Accounting is the study of how businesses track their income and assets over time. Accountants engage in a wide variety of activities in addition to preparing financial statements and recording busi ...

Questionson may 5 2006 disney company completed an all

Questions On May 5, 2006, Disney Company completed an all stock acquisition of Pixar, a digital animation studio. Disney believes that the creation of high quality feature animation is a key driver of success across many ...

Company annual report studychoose any company and make a

COMPANY ANNUAL REPORT STUDY Choose any company and make a report on financial report of company: David Jones Introduction (about 100 words) Conceptual framework (200 words) Critical analysis (200 words) Ethics (not more ...

Assignment intermediate accountinginstructionsbulluse the

Assignment: Intermediate Accounting Instructions: • Use the answer sheet provided. • For the multiple choice answers, use upper case letters. • Only submit you answer sheet in the Assignment Folder NLT No late examinatio ...

Assignmentapplication break-even analysiswhen expenses and

Assignment Application: Break-Even Analysis When expenses and revenues are equal, this is known as the "break-even point" or BEP. To determine break-even, an examination of fixed and variable costs (expenses) in relation ...

- discuss the pros and cons of leasing vs purchasing a

- Discuss the pros and cons of leasing vs purchasing a fleet of business vehicles for a client's business, (assume the loan rate on purchasing the vehicles is 6% and the implicit interest rate in the lease is also 6%). - ...

To make sure you are up to date on the special guidelines

To make sure you are up to date on the special guidelines the GASB has declared, your manager asked you to research GASB Statement No. 56. He also asked you to show him, side by side, how government accounting journal en ...

Mcreath corporation is a leading producer of fresh frozen

McReath Corporation is a leading producer of fresh, frozen, and made from concentrate citrus drinks. The firm was founded in 1922 by Charles McReath, an army veteran who settled in Jacksonville, Florida, after World War ...

Decide upon an initiative you want to implement that would

Decide upon an initiative you want to implement that would increase sales over the next five years, (for example, market another product, corporate expansion, and so on). Using the sample financial statements, create pro ...

  • 4,153,160 Questions Asked
  • 13,132 Experts
  • 2,558,936 Questions Answered

Ask Experts for help!!

Looking for Assignment Help?

Start excelling in your Courses, Get help with Assignment

Write us your full requirement for evaluation and you will receive response within 20 minutes turnaround time.

Ask Now Help with Problems, Get a Best Answer

Section onea in an atwood machine suppose two objects of

SECTION ONE (a) In an Atwood Machine, suppose two objects of unequal mass are hung vertically over a frictionless

Part 1you work in hr for a company that operates a factory

Part 1: You work in HR for a company that operates a factory manufacturing fiberglass. There are several hundred empl

Details on advanced accounting paperthis paper is intended

DETAILS ON ADVANCED ACCOUNTING PAPER This paper is intended for students to apply the theoretical knowledge around ac

Create a provider database and related reports and queries

Create a provider database and related reports and queries to capture contact information for potential PC component pro

Describe what you learned about the impact of economic

Describe what you learned about the impact of economic, social, and demographic trends affecting the US labor environmen