Description I would like for someone to explain to me how to get the answers. Even if they gave me the answers to the questions and I try to figure out how you came to that is okay for me. 1 attachmentsSlide 1 of 1attachment_1attachment_1.slider-slide > img { width: 100%; display: block; } .slider-slide > img:focus { margin: auto; } Unformatted Attachment Preview Problem #1 Bonds Payable The detail pertaining to a bond issuance a shown below: Date of Issuance 1-Feb-18 Number of $1,000 bonds 7300 Annual Bond rate 6.20% Interest paid Feb. 1 & Aug. 1 Term in years 5 Annualized Market Rate 6.60% Issue Price $ 7,177,344 Record the following transactions a 1-Feb-18 the issuance of the bonds b 1-Aug-18 the first semi-annual interest payment and amortization of discount or premium as appropriate using the “effective interest method” c 31-Dec-18 year-end interest accrual using the “effective interest method” d 1-Feb-19 the second semi-annual interest payment and amortization of discount or premium as appropriate using the “effective interest method” e 1-Feb-20 After paying semi-annual interest and recording the appropriate amortization (do not record), Victoria retires: 2,920 Bonds @ $ 1,060 Record the bond retirement assuming the effective interest method had been used to this point. Debit 1-Feb-18 a 1-Aug-18 b 31-Dec-18 c 1-Feb-19 d 1-Feb-20 e Credit Problem #2 Earnings per Share Dayanna’s Ditalini Inc. reported $2,386,250 of net income for the year ended December 31, 2020. The company had 1,200,000 shares of common stock issued and outstanding throughout the entire year of 2020 and paid taxes at a rate of 40%. In addition the following other securities were carried by the company: a 180,000 Shares of convertible preferred stock $100 par 3.10% cumulative 3 shares of common stk for each share of preferred b 172,000 Shares of convertible preferred stock $100 par 2.75% cumulative 3 shares of common stk for each share of preferred c 16,000 $1,000 convertible bonds 7.20% cumulative 40 shares of common stk for $1,000 bond d 12,000 $1,000 convertible bonds 6.50% cumulative 44 shares of common stk for $1,000 bond e 600,000 Each options allows the holder to purchase a share of Common stock $ 27.00 Option price per share $ 30.00 Average market price per share Instructions: 1 Compute basic earnings per share for 2020 (rounded to one-tenth of a cent) 2 Compute diluted earnings per share for 2020 (rounded to one-tenth of a cent) show all work Please type your solution below Problem #3 Dividends The stockholders’ equity accounts of Lilia’s Linguine Ltd. (LLL) balances as of December 31, 2019 are as follows: Common stock, $2.00 par $ 120,000 $ 850,000 $ 4,500,000 Paid in capital in excess of par Retained earnings Required: Prepare the appropriate journal entry for each of the following 2020 transactions: 15-Jan LLL declares a 35% stock dividend 14-Feb Shares of AADPL are currently selling on the NYSE at $22. 35% stock dividend distribution date, FMV of stock = $24 9-May LLL declares a 4% stock dividend 16-May Shares of AADPL are currently selling on the NYSE at $25. 4% stock dividend distribution date, FMV of stock = $26 20-Jun LLL declares a $.80 per share cash dividend 4-Jul 12-Nov Cash dividend payment date LLL declares a property dividend providing that each holder of a share of common stock will receive a one pound of linguine with a fair value of $3.00/box. The linguine is carried inventory at a cost of $180,000 24-Dec LLL distributes the linguine. Problem #4 Bonds with Warrants Bobby Wino, majority owner of Weinstein’s Nordic Italian Cuisine (WNIC) needed a modest Lajolla beachfront home and elected to raise capital by issuing $4,000,000 face value bonds with a coupon rate of 4%. To make the securities more attractive WNIC offered the bonds with stock warrants at a rate of one warrant for each $1,000 bond. The value of the bonds without the warrants is considered to be $3,942,785, and the value of the warrants in the market is $80,465. The bonds/warrants sold in the market at issuance for $4,002,075 Required: a Prepare the appropriate journal entry to record the issuance of the bonds and the warrants assuming the warrants are detachable b Prepare the appropriate journal entry to record the issuance of the bonds and the warrants assuming the warrants are not detachable and the individual fair market values are not determinable. Debit Credit Debit Credit 15-Jan 14-Feb 9-May 16-May 20-Jun 4-Jul 12-Nov 24-Dec a b Problem #5 Stockholders’ Equity Bryanna’s Baked Goods Inc . has the following adjusted account balances December 31, 2020: Accounts receivable Accounts payable Accrued expenses payable Accumulated depreciation – Equipment Accumulated depreciation – Building Advances to employees Allowance for doubtful accounts Bond discount Bonds payable (due 2025) Bond sinking fund Building Cash Cash Dividends – Common Stock Cash Dividends – Preferred Stock Cash Surrender value of officers’ life insurance Common stock, $2 par (60,000 shrs. issued) Cost of goods sold Discount on Notes Receivable Equipment Franchise (unamortized cost) Gain on sale of Discontinued operation General & Administrative expenses Goodwill Land Income tax allocated to income from continuing operations Income tax allocated to gain on sale of discontinued operation Inventory – ending Net sales Notes receivable (due 2021) Notes payable ($45,000 due 2021) Operating Loss from discontinued operations Other Comprehensive Income Paid in capital in excess of par – Common Stock Paid in capital in excess of par – Preferred Stock Paid in capital – Treasury stock Patents Preferred stock, 5%, $100 par Prepaid insurance Prepaid taxes Recoverable income taxes (pending refund) Debit 324,000 Credit 223,000 24,000 320,000 724,000 14,000 19,000 23,000 520,000 302,000 850,000 450,000 75,000 15,000 66,000 120,000 2,727,000 6,000 850,000 212,000 240,000 1,016,300 68,000 250,000 408,000 96,000 730,000 5,050,000 136,000 200,000 482,000 21,000 900,000 10,000 6,000 111,000 300,000 48,000 24,000 31,000 Retained earnings (January 1, 2020) Securities Available for Sale (long-term) Securities fair value adjustment – Trading Securities Securities fair value adjustment – Securities Available for Sale Selling expenses Supplies Tax benefit – Loss on Discontinued operations Trading Securities Treasury Stock – (10,000 Common shares at cost) Unearned revenues (to be earned 2021) 1,278,000 231,000 14,000 21,000 453,500 16,000 192,800 149,000 53,000 10,231,800 Instructions: Assuming the Net Income for 2020 is $300,000, prepare the Stockholders’ Equity section of the Balance Sheet for Bryanna’s Baked goods. Par value Authorized shares Issued shares Outstanding shares Common Stk. Preferred Stk. $ 2.00 $ 100.00 500,000 10,000 60,000 3,000 50,000 3,000 64,000 10,231,800 – Please type your solution below Problem #6 Stock Options On Dec. 24, 2015 Diana’s Supershakes Corp. adopted a stock option plan that granted options to executives allowing them to purchase 500,000 shares of the company’s $2.00 par value common stock @ $15/share. The options were granted on January 2nd, 2016. The compensation service period was 3-yrs commencing on the date of the grant. Using an “acceptable option pricing model” the company established fair value of $1,500,000 as of January 2, 2016. The options were exercisable during the 2019 calendar year. On January 17th, 2018, Professor Weinstein, a “disgruntled employee”, was caught pilfering inventory, revealing secrets to a competitor, stealing office supplies, and making false and pernicious statements regarding top employee of the millennium Giovanni Pace’ thereby forfeiting his claim to 25,000 options. On May 9, 2019 The remaining options expired. The remaining options expired as the DSC Corp.. stock price plummeted when it became public knowledge that the company’s “supershakes” were in fact Shoprite Whole Milk mixed with chocolate syrup and steroids. Required: Prepare the appropriate journal entries (if any) for the 2016 though 2019. Problem #7 Treasury Stock Weinstein’s Hot Hot Dogs, Ltd. began 2016 with the following balances in stockholders’ equity: Common stock (250,000 shares) PIC in excess of par Retained Earnings The following transactions occurred during 2016: $ 1,250,000 $ 2,250,000 $ 1,250,000 Jan 15 Re-acquired 40,000 shares of stock and placed them in treasury at a cost of $ 650,000 May 9 Re-issued 14,000 shares receiving $ 234,500 May 16 Re-issued 12,000 shares receiving $ 189,600 June 20 Re-issued 6,000 shares receiving $ 90,000 Dec 24 Retired remaining shares held in treasury Required: Record the above transactions using the “cost” method Debits Credits Debits Credits 31-Dec-16 31-Dec-17 17-Jan-18 31-Dec-18 9-May-19 31-Dec-19 Jan 15 May 9 May 16 June 20 Dec 24 Purchase answer to see full attachment Tags: interest rate Amortization Table bond payable intrest expense beginnining balance User generated content is uploaded by users for the purposes of learning and should be used following Studypool’s honor code & terms of service.

Description

I would like for someone to explain to me how to get the answers. Even if they gave me the answers to the questions and I try to figure out how you came to that is okay for me.

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Problem #1
Bonds Payable
The detail pertaining to a bond issuance a shown below:
Date of Issuance
1-Feb-18
Number of $1,000 bonds
7300
Annual Bond rate
6.20%
Interest paid
Feb. 1 & Aug. 1
Term in years
5
Annualized Market Rate
6.60%
Issue Price
$ 7,177,344
Record the following transactions
a
1-Feb-18
the issuance of the bonds
b
1-Aug-18
the first semi-annual interest payment and
amortization of discount or premium as appropriate
using the “effective interest method”
c
31-Dec-18
year-end interest accrual
using the “effective interest method”
d
1-Feb-19
the second semi-annual interest payment and
amortization of discount or premium as appropriate
using the “effective interest method”
e
1-Feb-20
After paying semi-annual interest and recording the
appropriate amortization (do not record),
Victoria retires:
2,920 Bonds @
$
1,060
Record the bond retirement assuming the effective interest
method had been used to this point.
Debit
1-Feb-18
a
1-Aug-18
b
31-Dec-18
c
1-Feb-19
d
1-Feb-20
e
Credit
Problem #2
Earnings per Share
Dayanna’s Ditalini Inc. reported $2,386,250 of net income for the year
ended December 31, 2020. The company had 1,200,000 shares of common stock
issued and outstanding throughout the entire year of 2020 and paid taxes at a
rate of 40%. In addition the following other securities were carried
by the company:
a
180,000 Shares of convertible preferred stock $100 par
3.10% cumulative
3 shares of common stk for each share of preferred
b
172,000 Shares of convertible preferred stock $100 par
2.75% cumulative
3 shares of common stk for each share of preferred
c
16,000 $1,000 convertible bonds
7.20% cumulative
40 shares of common stk for $1,000 bond
d
12,000 $1,000 convertible bonds
6.50% cumulative
44 shares of common stk for $1,000 bond
e
600,000 Each options allows the holder to purchase a share of
Common stock
$
27.00 Option price per share
$
30.00 Average market price per share
Instructions:
1
Compute basic earnings per share for 2020 (rounded to one-tenth of a cent)
2
Compute diluted earnings per share for 2020 (rounded to one-tenth of a cent)
show all work
Please type your solution below
Problem #3
Dividends
The stockholders’ equity accounts of Lilia’s Linguine Ltd. (LLL)
balances as of December 31, 2019 are as follows:
Common stock, $2.00 par
$
120,000
$
850,000
$ 4,500,000
Paid in capital in excess of par
Retained earnings
Required:
Prepare the appropriate journal entry for each of the following
2020 transactions:
15-Jan
LLL declares a 35% stock dividend
14-Feb
Shares of AADPL are currently selling on the NYSE at $22.
35% stock dividend distribution date, FMV of stock = $24
9-May
LLL declares a 4% stock dividend
16-May
Shares of AADPL are currently selling on the NYSE at $25.
4% stock dividend distribution date, FMV of stock = $26
20-Jun
LLL declares a $.80 per share cash dividend
4-Jul
12-Nov
Cash dividend payment date
LLL declares a property dividend providing that each holder of
a share of common stock will receive a one pound of linguine with a
fair value of $3.00/box. The linguine is carried inventory at a
cost of $180,000
24-Dec
LLL distributes the linguine.
Problem #4
Bonds with Warrants
Bobby Wino, majority owner of Weinstein’s Nordic Italian Cuisine (WNIC) needed a
modest Lajolla beachfront home and elected to raise capital by issuing $4,000,000 face value
bonds with a coupon rate of 4%.
To make the securities more attractive WNIC offered the bonds
with stock warrants at a rate of one warrant for each $1,000 bond.
The value of the bonds without the warrants is considered to be $3,942,785, and
the value of the warrants in the market is $80,465. The bonds/warrants sold in
the market at issuance for $4,002,075
Required:
a Prepare the appropriate journal entry to record the issuance of the bonds
and the warrants assuming the warrants are detachable
b
Prepare the appropriate journal entry to record the issuance of the bonds
and the warrants assuming the warrants are not detachable and the
individual fair market values are not determinable.
Debit
Credit
Debit
Credit
15-Jan
14-Feb
9-May
16-May
20-Jun
4-Jul
12-Nov
24-Dec
a
b
Problem #5
Stockholders’ Equity
Bryanna’s Baked Goods Inc . has the following adjusted account balances
December 31, 2020:
Accounts receivable
Accounts payable
Accrued expenses payable
Accumulated depreciation – Equipment
Accumulated depreciation – Building
Advances to employees
Allowance for doubtful accounts
Bond discount
Bonds payable (due 2025)
Bond sinking fund
Building
Cash
Cash Dividends – Common Stock
Cash Dividends – Preferred Stock
Cash Surrender value of officers’ life insurance
Common stock, $2 par (60,000 shrs. issued)
Cost of goods sold
Discount on Notes Receivable
Equipment
Franchise (unamortized cost)
Gain on sale of Discontinued operation
General & Administrative expenses
Goodwill
Land
Income tax allocated to income from continuing operations
Income tax allocated to gain on sale of discontinued operation
Inventory – ending
Net sales
Notes receivable (due 2021)
Notes payable ($45,000 due 2021)
Operating Loss from discontinued operations
Other Comprehensive Income
Paid in capital in excess of par – Common Stock
Paid in capital in excess of par – Preferred Stock
Paid in capital – Treasury stock
Patents
Preferred stock, 5%, $100 par
Prepaid insurance
Prepaid taxes
Recoverable income taxes (pending refund)
Debit
324,000
Credit
223,000
24,000
320,000
724,000
14,000
19,000
23,000
520,000
302,000
850,000
450,000
75,000
15,000
66,000
120,000
2,727,000
6,000
850,000
212,000
240,000
1,016,300
68,000
250,000
408,000
96,000
730,000
5,050,000
136,000
200,000
482,000
21,000
900,000
10,000
6,000
111,000
300,000
48,000
24,000
31,000
Retained earnings (January 1, 2020)
Securities Available for Sale (long-term)
Securities fair value adjustment – Trading Securities
Securities fair value adjustment – Securities Available for Sale
Selling expenses
Supplies
Tax benefit – Loss on Discontinued operations
Trading Securities
Treasury Stock – (10,000 Common shares at cost)
Unearned revenues (to be earned 2021)
1,278,000
231,000
14,000
21,000
453,500
16,000
192,800
149,000
53,000
10,231,800
Instructions:
Assuming the Net Income for 2020 is $300,000, prepare the Stockholders’ Equity section
of the Balance Sheet for Bryanna’s Baked goods.
Par value
Authorized shares
Issued shares
Outstanding shares
Common Stk. Preferred Stk.
$
2.00 $
100.00
500,000
10,000
60,000
3,000
50,000
3,000
64,000
10,231,800
–
Please type your solution below
Problem #6
Stock Options
On Dec. 24, 2015 Diana’s Supershakes Corp. adopted a stock option
plan that granted options to executives allowing them to purchase 500,000 shares of the
company’s $2.00 par value common stock @ $15/share. The options were granted on
January 2nd, 2016. The compensation service period was 3-yrs commencing on the
date of the grant. Using an “acceptable option pricing model” the company established
fair value of $1,500,000 as of January 2, 2016. The options were exercisable during the
2019 calendar year.
On January 17th, 2018, Professor Weinstein, a “disgruntled employee”, was
caught pilfering inventory, revealing secrets to a competitor, stealing office supplies,
and making false and pernicious statements regarding top employee of the millennium
Giovanni Pace’ thereby forfeiting his claim to 25,000 options.
On May 9, 2019 The remaining options expired.
The remaining options expired as the DSC Corp.. stock price plummeted
when it became public knowledge that the company’s “supershakes” were
in fact Shoprite Whole Milk mixed with chocolate syrup and steroids.
Required:
Prepare the appropriate journal entries (if any) for the 2016 though 2019.
Problem #7
Treasury Stock
Weinstein’s Hot Hot Dogs, Ltd. began 2016 with the following balances in
stockholders’ equity:
Common stock (250,000 shares)
PIC in excess of par
Retained Earnings
The following transactions occurred during 2016:
$ 1,250,000
$ 2,250,000
$ 1,250,000
Jan 15
Re-acquired 40,000 shares of stock and placed them in treasury
at a cost of
$
650,000
May 9
Re-issued
14,000 shares receiving
$
234,500
May 16
Re-issued
12,000 shares receiving
$
189,600
June 20
Re-issued
6,000 shares receiving
$
90,000
Dec 24
Retired remaining shares
held in treasury
Required: Record the above transactions using the “cost” method
Debits
Credits
Debits
Credits
31-Dec-16
31-Dec-17
17-Jan-18
31-Dec-18
9-May-19
31-Dec-19
Jan 15
May 9
May 16
June 20
Dec 24

Purchase answer to see full
attachment

Tags:
interest rate

Amortization Table

bond payable

intrest expense

beginnining balance

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