chap16n - BRIEF EXERCISE 16-1 Cash . 4,950,000 Discount on...

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BRIEF EXERCISE 16-1 Cash . ........................................................................................... 4,950,000 Discount on Bonds Payable. ...................................................................... 50,000 Bonds Payable. .................................................................................. 5,000,000 BRIEF EXERCISE 16-2 Bonds Payable. ............................................................................................ 1,000,000 Discount on Bonds Payable. ............................................................ 30,000 Common Stock (1,000 X 50 X $10). ................................................. 500,000 Paid-in Capital in Excess of Par. ..................................................... 470,000 BRIEF EXERCISE 16-3 Preferred Stock. ........................................................................................... 50,000 Paid-in Capital in Excess of Par—Preferred Stock ($55 – $50) X 1,000. ....................................................................... 5,000 Common Stock. ................................................................................. 20,000 Paid-in Capital in Excess of Par— Common Stock ($55 X 1,000) – (2,000 X $10). ................................................... 35,000 BRIEF EXERCISE 16-4 Cash . ........................................................................................... 1,010,000 Discount on Bonds Payable ($1,000,000 – $970,392). ........................................................................... 29,608 Bonds Payable. .................................................................................. 1,000,000 Paid-in Capital—Stock Warrants. .................................................... 39,608 FMV of bonds (1,000 X $1,000 X .98) $ 980,000 FMV of warrants (1,000 X $40) 40,000 Aggregate FMV $1,020,000 Allocated to bonds ($980/$1,020 X $1,010,000) $ 970,392 Allocated to warrants ($40/$1,020 X $1,010,000) 39,608 $1,010,000 BRIEF EXERCISE 16-5 Cash . ........................................................................................... 1,010,000 Discount on Bonds Payable [$1,000,000 X (1 – .98)]. ............................................................................ 20,000 Bonds Payable. .................................................................................. 1,000,000 Paid-in Capital—Stock Warrants. .................................................... 30,000* *$1,000,000 X (1.01 – .98)
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BRIEF EXERCISE 16-6 1/1/08 No entry 12/31/08Compensation Expense. ............................................................... 70,000 Paid-in Capital—Stock Options. ............................................................... 70,000 12/31/09Compensation Expense. ............................................................... 70,000 Paid-in Capital—Stock Options. ............................................................... 70,000 BRIEF EXERCISE 16-7 $1,200,000 – (100,000 X $2) = $4.00 per share 250,000 shares BRIEF EXERCISE 16-8
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This note was uploaded on 09/29/2011 for the course AEM 3370 taught by Professor lippitt during the Spring '09 term at Cornell University (Engineering School).

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chap16n - BRIEF EXERCISE 16-1 Cash . 4,950,000 Discount on...

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