CHAPTER 16 ASSIGNMENT Credit will be withheld for each problem submitted without back-up; and not submitted on spreadsheet. Problem # 1 On May 31, 2011, Core Company issued 1,000, 14%, 10-year $1,000 bonds at 105. Each bond was issued with one detachable stock warrant. Shortly after issuance, the bonds were selling at 102, but the market value of the warrants cannot be determined. Instructions (a) Prepare the entry to record the issuance of the bonds and warrants. (b) Assume the same facts as part (a), except that the warrants had a fair value of $8. Prepare the entry to record the issuance of the bonds and warrants. Problem # 2 On January 1, 2011, Vermont Maple Corp. had 2,650,000 shares of common stock issued and outstanding. During 2011, it had the following transactions that affected the common stock account. Mar. 1 Issued 250,000 shares in exchange for land Apr. 1 Acquired 200,000 shares of treasury stock July 1 Issued a 20% stock dividend Sept. 1
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This note was uploaded on 01/20/2012 for the course ACCOUNTING 101 taught by Professor Dubai during the Spring '11 term at Abu Dhabi University.