In: Accounting
1. On January 1, 2019, Always Corporation issues $3,100,000, 5−year, 12% bonds for $3,010,000. Interest is paid semiannually on January 1 and July 1. Always Corporation uses the straight−line method of amortization. The company's fiscal year ends on December 31. The amount of discount amortized on July 1, 2019 is:
2. Williamson Company declared and distributed a 10% stock dividend when it had 900,000 shares of $1 par value common stock outstanding. The market price per share of common stock was $10 per share when the dividend was declared. The journal entry to record the stock dividend would include a credit to:
3. Orlando Corporation incorporated on January 2 of the current year. During the year, Orlando had the following transactions:
issued 70,000 shares of common stock at $35 per share. The par value per share is $1.
purchased1,000 shares of treasury stock at $26 per share
had net income of $400,000.
What is the total amount of stockholders' equity as of December 31 of the current year?
4. On January 1, 2019, Brewers Corporation issued $1,100,000 77%, 5−year bonds at 98, with interest paid annually. Using the straight−line amortization method, what is the carrying value of the bonds on January 1, 2019? (Round your final answer to the nearest dollar.)
5. A share of 5% preferred stock has a par value of $70 and market value of $100. The owners of the preferred stock will receive a cash dividend of: (Round your answer to the nearest cent.)
6. A bond with a face value of $90,000 and a quoted price of 103 has a selling price of: