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saint mba60 test 4




Question;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;January;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?;Assets;=;Equity;Cash Flow;Cash;Common Stock;+;Paid-in Capital in Excess of Par Value;+;Preferred Stock;+;Paid-in Capital in Excess of Stated Value


Paper#51290 | Written in 18-Jul-2015

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