Take to FINAL

Take to FINAL - Bond computations: AMORTIZING BOND...

Info iconThis preview shows page 1. Sign up to view the full content.

View Full Document Right Arrow Icon
Bond computations: Cash 100,000 Bonds Payable 100,000 (100 5yr $1000 10% Bonds @ 100) Bond Interest Expense 10,000 Bond interest payable 10,000 (Annually accrued interest 100,000*10%*12/12) Bond Interest Payable 10,000 Cash 10,000 (Payment of bond interest) Cash 3,920,000 Discount on Bonds payable 80,000 Bonds payable 4,000,000 (4mill 8% 20yr bond @ 98) Bonds payable 4,000,000 Loss on bond redemption (Amount paid-carrying value) 152,000 Cash 4,080,000 Discount on bonds payable (Face-carrying value) 72,000 (Bond called @102, carrying value of 3,928,000) Cash 5000 Common stock 1,000 Paid in capital in excess of par 4,000 (1,000 $1 shares issued at $5) Treasury stock 20,000 Cash 20,000 (Purchased 4,000 shares @ $5) Retained earnings/cash dividends Dividends payable (Declaration date of dividend payment) record date, ownership determined-paid to stockholders Dividends payable 50,000 Cash 50,000 (Payment date) Retained earnings/stock dividends 75,000 Common stock dividends distributable 50,000 Paid in capital in excess of par 25,000 (10% stock dividends on 50,000 shares–market value: $15 per share) If balance sheet written before
Background image of page 1
This is the end of the preview. Sign up to access the rest of the document.

This note was uploaded on 04/12/2011 for the course ACCT 1310 taught by Professor Vickivorrell during the Spring '07 term at Cuyahoga CC.

Ask a homework question - tutors are online