Torretto_14-3A - 180000 2767041 Proceeds of bond issue...

Info iconThis preview shows pages 1–3. Sign up to view the full content.

View Full Document Right Arrow Icon
Student Name Exercise 13-17 Accounting 1B Torretto Stockholders' Equity Paid -in Capital: Preferred 2% stock, $100 par (10,000 shares authorized, 4,800 shares issued) $480,000.00 Excess of issue price over par 78,000.00 $558,000.00 Common stock, $4 par (250,000shares authorized, 150,000 shares isssued) $600,000.00 Excess of issue price over par 210,000.00 810,000.00 From sale of treasury stock 42,000.00 Total paid-in capital $1,410,000.00 Retained earnings 3,903,000.00 Total $5,313,000.00 Deduct treasury stock (12,000 shares at cost) 120,000.00 Total stockholders' equity $5,193,000.00
Background image of page 1

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full DocumentRight Arrow Icon
Present Value of $1 for 30(Semi annual) Periods at 5%(Semi-annual rate) 0.23138 Face amount 3000000 694140 Present value of annuityof $1 for $30 for periods at 5% 15.37245 Semi annual interest payment
Background image of page 2
Background image of page 3
This is the end of the preview. Sign up to access the rest of the document.

Unformatted text preview: 180000 2767041 Proceeds of bond issue 3461181 1) Cash 3,461,181 Premium on Bonds Payable 461,181 Bonds Payable 3000000 2.a) Interest expense 164627 Premium on Bonds Payable 15373 Cash 180000 2.b) Interest Expense 164627 Premium on Bonds Payable 15373 Cash 180000 3) Total expense for 2010 is $164627 4) Yes. The bond proceeds will always be greater than the face amount of the bonds when the contract rate is greater than the market rate of interest Bancroft Corporation. Retained Earnings Statement For the Year Ended January 31, 2010 Retained earnings, February 1, 2010 3175500 Net Income 415000 Less Dividends: Stock 140000 Cash 75500 215500 Increased in retained earnings 199500 Retained earnings, January 1, 2010 3375000...
View Full Document

This note was uploaded on 03/26/2012 for the course ACCOUNTING 1A,1B,1C taught by Professor Spinozzi during the Summer '10 term at DeAnza College.

Page1 / 3

Torretto_14-3A - 180000 2767041 Proceeds of bond issue...

This preview shows document pages 1 - 3. Sign up to view the full document.

View Full Document Right Arrow Icon
Ask a homework question - tutors are online