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 |
ekkarill92 answered 1 year agoRelated 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
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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
$
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Paid-in capital
in excess of par value, common stock
525,000
Retained
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675,000
Total
stockholders’ equity
$
1,890,000
On February 5, the directors declare a 16% stock dividend
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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
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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
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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....
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