+1-415-670-9189
info@expertsmind.com
Prepare the journal entries
Course:- Cost Accounting
Reference No.:- EM13313




Assignment Help
Expertsmind Rated 4.9 / 5 based on 47215 reviews.
Review Site
Assignment Help >> Cost Accounting

Question 1:

On December 31, 20x7, the Jill Corporation issued $20,000,000 of 15 year face value bonds. The bonds pay interest on June 30 and December 31 of every year. The coupon rate is 7.8% and the yield to maturity is 8.4%.

a. What are the proceeds received on the bond issue on December 31, 20x7?

b. Prepare the journal entries for the year 20x8 to record the bond issue and interest expense.

c. Repeat (a) and (b) assuming that the yield to maturity is 7%.

Question 2

The XYZ Company, based on increasing demand is planning an expansion.  To facilitate this the company has issued the following two bond issues:

Bond A

Terms

Bond B

$800,000 

Face Value 

$1,200,000

7.5% 

Coupon (Stated)

Rate  6.0%

January 1, 20x8

 Issue Date 

July 1, 20x8

January 1, 20x14 

Maturity Date 

July 1, 20x21

June 30th, December31st

Interest Payment Dates

December 31st and June 30th

8.8% 

 Prevailing Market Rate

4.8%

What is the issue price for Bond A and B?

Question 3

Howard Corporation is a publicly owned company whose shares are traded on the TSE. At December 31, 20x4, Howard had unlimited shares of common shares authorized, of which 15,000,000 shares were issued. The shareholders' equity accounts at December 31, 20x4, had the following balances:

Common shares (15,000,000 shares)                  $230,000,000
Retained earnings                                                50,000,000

During 20x5, Howard had the following transactions:

a. On February 1, a distribution of 2,000,000 common shares was completed. The shares were sold for $18 per share.

b. On February 15, Howard issued, at $110 per share, 100,000 of no-par value, $8, cumulative preferred shares.

c. On March 1, Howard reacquired and retired 20,000 common shares for $14.50 per share.

d. On March 15, Howard reacquired and retired 10,000 common shares for $20 per share.

e. On March 31, Howard declared a semi-annual cash dividend on common shares of $0.10 per share, payable on April 30, 20x5, to shareholders of record on April 10, 20x5. (Record the dividend declaration and payment.)

f. On April 15, 18,000 common shares were reacquired and retired for $17.50 per share.

g. On September 30, Howard declared a semi-annual cash dividend on common shares of $0.10 per share and the yearly dividend on preferred shares, both payable on October 30, 20x5, to shareholders of record on October 10, 20x5.

Required:

Prepare journal entries to record the various transactions. Round per share amounts to two decimal places.




Put your comment
 
Minimize


Ask Question & Get Answers from Experts
Browse some more (Cost Accounting) Materials
Calculate the cost transferred from Cutting to Sewing. Calculate the cost transferred from Sewing to Packaging. Calculate the cost transferred from Packaging to Finished Goods
Evaluate each of these incentive plans. Are there better alternatives? Be sure to consider the important things a manager and a restaurant should do to contribute to McDonal
Discuss the nonfinancial information that may be used to evaluate the performance of a college or university and suggest what information provides the most insight to financ
Prince and Bernard had $20,000 and $150,000 in their January 1 capital balances, respectively. Net income for the year was $240,000. How much net income should be distribute
Another alternative for Venusian is to run an advertising campaign that would require additional advertising expenses of $37,500, but the best estimate is the campaign would
The direct operating cost of the departments (including both variable and fixed costs) were as follows. Purchasing $96,000. Maintenance 18,000. Fabrication $72,000. Assembly $
What is the true interest cost of skipping the discount and paying on day 40? Calculate the true interest cost of skipping the discount if the supplier accepts the payment wit
Compute the allocation rate that was used for the manufacturing overhead in Exhibits 2 and 3. Show your computations in enough detail and with enough organization