Description
PLEASE ANSWER ALL PROBLEMS AND BLANKS
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Explanation & Answer
By the by, do you want me to just log in and finish this? I could do that a lot faster.
Here you have it :) Done and done!Thanks again!Selenica
Row
1
2
3
Contract
Market
Less than
Discount
3.348.373,00
less
lower
Taxes
10% Bonds
Preferred $1 stock, $10 par
CS
EBIT
Less: Interest
Less:Taxes
Less: Preference Dividend
Earning Available for common stockholders
Number of common stock
Accounts
Cash
Discount on Bonds Payable
Bonds Payable
Cash
Discount
BP
IE
Discount
Cash
Accounts
Cash
Discount on Bonds Payable
Bonds Payable
Accounts
Interest Expense
Discount on Bonds Payable
Cash
Accounts
Cash
Premium on Bonds Payable
Bonds Payable
Accounts
Cash
Premium on Bonds Payable
Bonds Payable
Accounts
Interest Expense
Premium on Bonds Payable
Cash
Accounts
Bonds Payable
Loss on Redemption of Bonds
Discount on Bonds Payable
Cash
Accounts
Cash
Note Payable
Accounts
Interest Expense
Notes Payable
Cash
1) Issuanced of Bonds
Accounts
Cash
Discount on Bonds Payable
Bonds Payable
2)
Accounts
Interest Expense
Cash
3)
Accounts
Interest Expense
Cash
4)
Accounts
Bonds Payable
Discount on Bonds Payable
Bond Interest Expense:
Accounts
Cash
Premium on Bonds Payable
Bonds Payable
Accounts
Interest Expense
Premium on Bonds Payable
Cash
1-Mar
Accounts
Cash
Bonds Payable
1-Sep
Accounts
Interest Expense
Cash
2018, Sept 1
Accounts
Bonds Payable
Loss on Bond Retirement
Cash
Accounts
Interest Expense
Cash
2018, Sept 1
Accounts
Bonds Payable
Loss on Bond Retirement
Cash
Accounts
Cash
Note Payable
Accounts
Interest Expense
Notes Payable
Cash
Date
7/1
10/1
12/31
12/31
12/31
12/31
6/30
9/30
31-Dec
31-Dec
31-Dec
31-Dec
Jun-31
30-Sep
2)
3)
75100
15746
Selling Price
Total Discount
Accounts
Cash
Bond Discount
Bonds Payable
Row 1
Row 2
Row 3
6000
3051,4
9051,4
Accounts
Interest Expense
Discount on Bonds Payable
Cash
Row 1
Row 2
Row 3
Accounts
Interest Expense
Discount on Bonds Payable
Cash
Accounts
Bonds Payable
Cash
Row 1
Row 2
Row 3
6
7
Assets and liabilities
Balance sheet
10.000.000
At Par
Discount
Premium
Market rate: 7%
Coupon rate: 8%
PV of face:
PV of interest payments:
Selling price of bond:
Premium:
Accounts
Cash
Bonds Payable
Premium on Bonds Payable
Row
1
2
3
Cash Payment
Premiun Payable
Interest Expense
Accounts
Interest Expense
Premium
Cash
Row
Assets
Liabilities
1 No effect No effect
2 No effect –
3–
No effect
Equity
–
No effect
No effect
Accounts
Interest Expense
Premium
Cash
Accounts
Bonds Payable
Cash
Portion of a year
3/12
A) 62000 * .055 =
B)77000 * 0.03 * 1/12
Stays the same
Increases
Payment Date
31-May
Jun. 30
Jul. 31
Debit
206,2
credit
700
debit
interest expense
493,98
Contract...