Test 1 Intermediate Accounting 3312 Spring 2008 Name

Test 1 Intermediate Accounting 3312 Spring 2008 Name -...

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Test 1 Intermediate Accounting 3312 Spring 2008 Name:______________________ Bond interest and discount amortization. Logan Corporation issued $800,000 of 8% bonds on October 1, 2006, due on October 1, 2011. The interest is to be paid twice a year on April 1 and October 1. The bonds were sold to yield 10% effective annual interest. Logan Corporation closes its books annually on December 31. Instructions (a) Complete the following amortization schedule for the dates indicated. (Round all answers to the nearest dollar.) Use the effective-interest method. April 1, 2008 (b) Prepare the adjusting entry for December 31, 2007. Use the effective-interest method. (c) Compute the interest expense to be reported in the income statement for the year ended December 31, 2007.
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Basic and diluted EPS. The following information was taken from the books and records of Simonic, Inc.: 1) Net Income 300,000 2) Capital Structure: a. Convertible 6% bond. Each of the 200, $1,000 bonds is convertible into 20 shares of Common stock at the present date.
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Unformatted text preview: $200,000 b. Common Stock $10 par, 250,000 shares issued and outstanding for The entire year. $2,500,000. c. Stock Warrants outstanding to buy 20,000 shares of Common Stock At $21 per share. 3) Other Information: a. bonds converted during the year 0 b. Income Tax rate 32% c. Convertible debt was outstanding for the entire year d. Average market price per share of common stock $24 e. Warrants were outstanding the entire year f. Warrants exercised during the year. 0 Instructions Compute basic and diluted earnings per share. Treasury stock. Gagne Company's balance sheet shows: Common stock, $20 par $3,000,000 Paid-in capital in excess of par 1,050,000 Retained earnings 750,000 Instructions Record the following transactions by the cost method. (a) Bought 5,000 shares of its common stock at $29 a share. (b) Sold 2,500 treasury shares at $30 a share. (c) Sold 1,000 shares of treasury stock at $26 a share....
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Test 1 Intermediate Accounting 3312 Spring 2008 Name -...

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