Exercise 1;Intel Inc. is the pioneer in the manufacture of microprocessor for computers. The company?s fiscal year runs from April 1 to March 31. On 4/1/2013, Intel Issued $5,000,000 of 11% Bonds due in 10 years. The interest is payable annually on April 1. The market rate of interest on that date for bonds of similar risk is 10%;Prepare the journal entry for the issuance of the bonds and on the first interest payment date.;Use the attached spreadsheet to prepare an amortization schedule for the bonds.;Exercise 2;Presented below is the stockholders equity section of AMR Corporation.;All amounts are in million except for number of shares and par value;Stockholders' Equity (Deficit) Current;Year Prior;Year;Preferred stock-20,000,000 shares authorized, none issued $ -0- $ -0-;Common stock-$1 par value, 750,000,000 shares authorized, 182,350,259 shares issued 182 182;Additional paid-in capital 2,521 2,605;Treasury shares at cost: current year-21,194,312, prior year-22,768,027 (1,308) (1,405);Accumulated other comprehensive loss (664) (785);Accumulated deficit (1,312) (551);$ (581) $ 46;Explain why the common stock is classified as part of the stockholder's equity.;Explain why treasury stock is not classified as an asset.;Explain what is meant by "Accumulated other comprehensive loss.;Why is the accumulated deficit larger in the current year than in the prior year?;Compute book value per share for AMR for the current year.
Paper#81934 | Written in 18-Jul-2015Price : $21