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1. On May 1, 2013 Green Corp




1. On May 1, 2013 Green Corp issued $1,000,000 of 12% bonds, dated January 1, 2013, for $975,000 plus accrued interest. The bonds mature on Dec 3, 2027, and pay interest semiannually on June 30 and December 31. Green?s fiscal year ends on December 31 each year.;Instructions;1. Determine the amount of accrued interest that was included in the proceeds received from the bond sale. (Show calculations);2. Prepare the journal entry for the issuance of the bonds.;2. On January 1, 2013, Shamu Corporation had 100,000 shares of common stock outstanding. The following transactions occurred during 2013;March 1: Reacquired 3,000 shares, accounted for as treasury stock;Sep 30: Sold all the treasury shares;Dec 1: Sold 12,000 new shares for cash;Dec 31: Reported a net income of $198,500;The following transactions occurred during 2014;Jan 10: Declared and issued a 25% stock dividend;Dec 31: Reported a net income of $268,800;Instructions;Calculate Shamu?s basic earning per share (rounded to 2 decimal places) for both years for presentation in comparative financial statements that will be prepared at the end of 2014.;3. In 2012, Mordica Co. issued 300,000 of its 500,000 authorized shares of $10 par value common stock at $35 per share. In January, 2013, Mordican repurchased 20,000 shares at $30 per share. Assume these are the only stock transactions the company ever had.;Instructions;1. What are the two methods of accounting for treasury stock?;2. Prepare the journal entry to record the purchase of treasury stock by the cost method.;3. 7,000 shares of treasury stock are reissued at $33 per share. Prepare the journal entry to record the reissuance by the cost method.


Paper#79772 | Written in 18-Jul-2015

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