Question

In: Accounting

13-6 Final The stockholders’ equity of TVX at the beginning of the day on February 5...

13-6 Final The stockholders’ equity of TVX at the beginning of the day on February 5 follows:

Com. stock - $10 par value, 150,000 shares authorized, 60,000 shares issued and outstanding $600,000

Paid-in capital in excess of par value, common stock 425,000

Retained earnings 550,000

Total stockholders’ equity $1,575,000

On February 4, the directors declare a 20% dividend distributable on February 28 to the February 15 stockholders of record. The stock’s market value is $40 per share on February 5 before the stock dividend. The stock’s market value is $32.50 per share on February 28. 1. Prepare entries to record both the dividend declaration and its distribution. 2. One stockholder owned 800 shares on February 5 before the dividend. Compute the book value per share and total book value of this shareholder’s shares immediately before and after the stock dividend of February 5. 3. Compute the total market value of the investor’s shares in part 2 as of February 5 and February 28.

14-9 On 1/1/2017 Shay issues $600,000, 10 %, 15-year bonds at 97 3/4. Six years into the life of the bonds, on January 1, 2023, Shay retires 30% of these bonds on the open market at 104 ½. The straight-line method is used to amortize the discount. 1. How much does the company receive when it issues the bonds on 1/1/2017? 2.What is the amount of the discount on the bonds at January 1, 2017? 3. How much of the discount is recorded on the bonds for the entire period from January 1, 2017 through December 31, 2022? 4. What is the carrying value (book value) of the bonds as of the close of business on December 31, 2022? 5. How much did the company pay on January 1, 2023 to purchase the bonds that it retired? 6. What is the amount of gain or loss from retiring the bonds? 7. Prepare the journal entry to record the bond retirement on January 1, 2023.

Solutions

Expert Solution

Date General Journal Dr CR
ans 1 Retained Earnings $480000
Feb-04 Common stock Dividend Distributable (12000*10) 120000
Paid in capital in excess of par-Common stock (480000-120000) 360000
(being stock dividend declared)
No.of common stock issued
60000*20% 12000
Market value 12000*40 480000
Feb-28 Common stock Dividend Distributable (12000*10) 120000
Common stock 120000
ans 2
Before After
Book value per share 26.25 21.875
(1575000/60000) (1575000/72000)
Total Book value 21000 21000
(1575000/60000*800) (1575000/72000*(800*1.2))
Note after stock dividend also the total shareholder equity remains same
Feb-05 Feb-28
ans 3 Total market price 32000 31200
800*40 800*1.2*32.5
Dera student there are two different question I have answered first one.
If any doubt please comment

Related Solutions

The stockholders’ equity of TVX Company at the beginning of the day on February 5 follows.
The stockholders’ equity of TVX Company at the beginning of the day on February 5 follows. Common stock—$20 par value, 150,000 shares authorized, 57,000 shares issued and outstanding $ 1,140,000 Paid-in capital in excess of par value, common stock 429,000 Retained earnings 555,000 Total stockholders’ equity $ 2,124,000 On February 5, the directors declare a 2% stock dividend distributable on February 28 to the February 15 stockholders of record. The stock’s market value is $31 per share on February 5...
The stockholders’ equity of TVX Company at the beginning of the day on February 5 follows:...
The stockholders’ equity of TVX Company at the beginning of the day on February 5 follows: Common stock—$15 par value, 150,000 shares authorized, 70,000 shares issued and outstanding $ 1,050,000 Paid-in capital in excess of par value, common stock 525,000 Retained earnings 675,000 Total stockholders’ equity $ 2,250,000 On February 5, the directors declare a 18% 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...
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...
The stockholders’ equity of TVX Company at the beginning of the day on February 5 follows:...
The stockholders’ equity of TVX Company at the beginning of the day on February 5 follows: Common stock—$5 par value, 150,000 shares authorized, 55,000 shares issued and outstanding $ 275,000 Paid-in capital in excess of par value, common stock 525,000 Retained earnings 675,000 Total stockholders’ equity $ 1,475,000 On February 5, the directors declare a 12% stock dividend distributable on February 28 to the February 15 stockholders of record. The stock’s market value is $45 per share on February 5...
The stockholders’ equity of TVX Company at the beginning of the day on February 5 follows....
The stockholders’ equity of TVX Company at the beginning of the day on February 5 follows. Common stock—$25 par value, 150,000 shares authorized, 57,000 shares issued and outstanding $ 1,425,000 Paid-in capital in excess of par value, common stock 423,000 Retained earnings 553,000 Total stockholders’ equity $ 2,401,000 On February 5, the directors declare a 2% 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...
The stockholders' equity of TVX Company at the beginning of the day on February 5 follows:...
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, 67,000 shares issues and outstanding 670,000 Paid-in capital in excess of par value, common stock 525,000 Retained Earnings 675,000 Total Stockholders' Equity 1,870,000 On February 5, the directors declare a 12% stock dividend distributable on February 28 to the February 15 stockholders of record. The stock's market value is $39 per share on February 5...
The stockholders’ equity of TVX Company at the beginning of the day on February 5 follows:  ...
The stockholders’ equity of TVX Company at the beginning of the day on February 5 follows:   Common stock—$20 par value, 150,000 shares authorized, 51,000 shares issued and outstanding $ 1,020,000 Paid-in capital in excess of par value, common stock 525,000 Retained earnings 675,000 Total stockholders’ equity $ 2,220,000 On February 5, the directors declare a 18% stock dividend distributable on February 28 to the February 15 stockholders of record. The stock’s market value is $47 per share on February 5...
[The following information applies to the questions displayed below.] The stockholders’ equity of TVX Company at...
[The following information applies to the questions displayed below.] 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...
At the beginning of January 201X, the stockholders’ equity of Mountain View Corporation consisted of the...
At the beginning of January 201X, the stockholders’ equity of Mountain View Corporation consisted of the following: Paid-In Capital Common Stock, $30 par value, authorized 60,000 shares, 15,000 shares issued and outstanding $450,000 Paid-In Capital in Excess of Par Value - Common 80,000 Total Paid-In Capital by Common Stockholders $530,000 Retained Earning 170,000 Total Stockholders’ Equity $700,000 Figure 4 1. Record the transactions in general journal form. 2. Prepare the stockholders’ equity section at year-end using the Blueprint as a...
At the beginning of January 201X, the stockholders’ equity of Mountain View Corporation consisted of the...
At the beginning of January 201X, the stockholders’ equity of Mountain View Corporation consisted of the following: Paid-In Capital: Common Stock, $30 par value, authorized 60,000 shares, 15,000 shares issued and outstanding $450,000 Paid-In Capital in Excess of Par Value-Common 80,000 Paid-In Capital by Common Stockholders $530,000 Retained Earnings 170,000 Total Stockholders’ Equity $700,000 Figure 8 Tasks: a. Record the transactions in general journal form. b. Prepare the stockholders’ equity section at year-end using the Blueprint as a guide. c....
ADVERTISEMENT
ADVERTISEMENT
ADVERTISEMENT