Question

In: Accounting

1/ The stockholders’ equity of TVX Company at the beginning of the day on February 5...

1/ The stockholders’ equity of TVX Company at the beginning of the day on February 5 follows:

Common stock—$10 par value, 150,000 shares
authorized, 69,000 shares issued and outstanding		 $ 690,000
Paid-in capital in excess of par value, common stock 525,000
Retained earnings 675,000
Total stockholders’ equity $ 1,890,000


On February 5, the directors declare a 16% stock dividend distributable on February 28 to the February 15 stockholders of record. The stock’s market value is $41 per share on February 5 before the stock dividend. The stock’s market value is $35 per share on February 28.

One stockholder owned 600 shares on February 5 before the dividend. Compute the book value per share and total book value of this stockholder’s shares immediately before and after the stock dividend of February 5. (Round your "Book value per share" answers to 3 decimal places.)

Before After
Book value per share $27.391
Total book value of shares $

2/ Required information

The following information applies to the questions displayed below.]

Duval Co. issues four-year bonds with a $101,000 par value on January 1, 2017, at a price of $96,990. The annual contract rate is 8%, and interest is paid semiannually on June 30 and December 31.

. Prepare an amortization table for these bonds. Use the straight-line method of interest amortization. (Round your answers to the nearest dollar amount.)

Semiannual Unamortized Carrying
Period-End Discount Value
1/01/2017
6/30/2017
12/31/2017
6/30/2018
12/31/2018
6/30/2019
12/31/2019
6/30/2020
12/31/2020

Solutions

Expert Solution

Part a

Before After
Total Stockholders Equity $ 18,90,000.00 $ 18,90,000.00
/ Shares 150000 174000
Book Value/Share $                 12.60 $                10.86
Shares Owned 600 696
Book Value of Shares $           7,560.00

$          7,560.00

Part B

Period ends Unamortized Discount Carrying Value
01.01.2017 $                          4,010.00 $       96,990.00
30.06.2017 $                          3,508.75 $       97,491.25
31.12.2017 $                          3,007.50 $       97,992.50
30.06.2018 $                          2,506.25 $       98,493.75
31.12.2018 $                          2,005.00 $       98,995.00
30.06.2019 $                          1,503.75 $       99,496.25
31.12.2019 $                          1,002.50 $       99,997.50
30.06.2020 $                             501.25 $    1,00,498.75
31.12.2020 $                                       -   $    1,01,000.00

ekkarill92 answered 2 years ago
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