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MBA560 Financial and Managerial Accounting: Module 4 Test (2 Problems)




Question;Saint Leo University (Graduate;Business Studies);MBA560 Financial and Managerial;Accounting;Module 4 Test;Problem 1.;Villarente Company issued 5-year $200,000 face value bonds at 95 on;January 1, 2012. The stated interest rate on these bonds is 9%, and the;effective interest rate is 10.33%.;Use the effective interest rate method to complete the amortization;schedule below.;Cash Payment Interest Expense Discount Amortization Carrying;Value;Jan 1, 2012;December 31, 2012;December 31, 2013;December 31, 2014;December 31, 2015;December 31, 2016;Totals;Problem 2.;Allen Corporation was organized on July 15, 2012. It was authorized to;issue 150,000 shares of $25 par value common stock and 50,000 shares of 6%;cumulative preferred stock. The preferred stock had a stated value of $50 per;share. The following stock transactions relate to Allen Corporation.;? Issued 55,000 shares of common stock for $33 per share.;? Issued 2,750 shares of the class A preferred stock for $62 per share.;? Issued 27,500 shares of common stock for $35 per share.;Required;1) Indicate the effect of each of these transactions on Allen's;financial statements. Include dollar amounts in the model, below. After;recording the three transactions, calculate column totals.;2) After these transactions have been recorded, what is the total;amount of stockholders' equity?;3) After these transactions have been recorded, how many shares of;common stock are outstanding?


Paper#37681 | Written in 18-Jul-2015

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