Reference no: EM132181496
Question: 1. On January 1, 2017, Candlestick, Inc. sells $100,000, five-year, 10% bonds for 92.639% of face value. On the other hand the same company sells 108.111% of face value on July 1, 2017. Pass the necessary journal entry for issuance of bonds.
2. A company is authorized to issue 800,000 shares of $6 par value common stock. Prepare journal entries to record the following selected transactions that occurred during the company's first year of operations:
March. 8 Sold 110,000 shares of common stock for $9 cash per share.
March. 12 Exchanged 12,000 shares of common stock for equipment with a market value of $90,000.
3. Use the following calendar-year information to prepare Ibrahim Company's statement of cash flows using the direct method:
Cash paid to purchase machinery $ 124,000
Cash paid for merchandise inventory 220,000
Cash paid for operating expenses 280,000
Cash paid for interest 4,000
Cash received for interest 10,000
Cash proceeds from sale of land 100,000
Cash balance at beginning of year 15,000
Cash balance at end of year 77,000
Cash borrowed on a short-term note 25,000
Cash dividends paid 24,000
Cash received from stock issuance 57,000
Cash collections from customers 522,000