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January 30 of erred stock.$75 par. Ing transactions were completed during the Jan. 30 Issued 300,000 shares of common stock at par for cash 31 Issued 750 shares of common stock at par to an attorney in payment of legal fees for organizing the corporation. VFeb 21 Issued 32,000 shares of common stock in exchange for land., buildings, and equipment with fair market prices of $150,000, $460.000 and $90,000 respectively March 2 Issued 15,000 shares of preferred stock at $77.50 for cash Journalize the transactions. 142. McCool Corporation wholesales repair products to equipment manufacturers. On April 1, 2010 McCool Corporation issued $30,00,000 of five year 10% bonds at a market (effective) interest rate of 8%, receiving cash of $32,466,500. Interest is payable semiannually on April 1 and October 1. Journalize the entries to record the following (Amortize premium by straight line method) Sale of bonds on April 1, 2012 First interest payment on Oct. 1, 2012, and amortization of bond premium for six months (round to the nearest dollar) Explain briefly why the company was able to issue bonds for $32,446,500 rather than for the face amount of $30,000,000 a. b. c. 3. On January 10, 2012 Badger Co. purchased 30% of the outstanding stock of Crest Co. for $123.000. Crest paid total dividends to all shareholders of $15,000 on July 15. crest had a net loss of $25,000 for 2012 Journalize Badger's purchase of the stock, receipt of dividend and adjusting entry for the equity loss in Crest Co. Stock. b. Compute the balance of investment in Crest CO. Stock for December 31, 2012. a.

January 30 of erred stock.$75 par. Ing transactions were completed during the Jan. 30 Issued 300,000 shares of common stock at par for cash 31 Issued 750 shares of common stock at par to an attorney in payment of legal fees for organizing the corporation. VFeb 21 Issued 32,000 shares of common stock in exchange for land., buildings, and equipment with fair market prices of $150,000, $460.000 and $90,000 respectively March 2 Issued 15,000 shares of preferred stock at $77.50 for cash Journalize the transactions. 142. McCool Corporation wholesales repair products to equipment manufacturers. On April 1, 2010 McCool Corporation issued $30,00,000 of five year 10% bonds at a market (effective) interest rate of 8%, receiving cash of $32,466,500. Interest is payable semiannually on April 1 and October 1. Journalize the entries to record the following (Amortize premium by straight line method) Sale of bonds on April 1, 2012 First interest payment on Oct. 1, 2012, and amortization of bond premium for six months (round to the nearest dollar) Explain briefly why the company was able to issue bonds for $32,446,500 rather than for the face amount of $30,000,000 a. b. c. 3. On January 10, 2012 Badger Co. purchased 30% of the outstanding stock of Crest Co. for $123.000. Crest paid total dividends to all shareholders of $15,000 on July 15. crest had a net loss of $25,000 for 2012 Journalize Badger's purchase of the stock, receipt of dividend and adjusting entry for the equity loss in Crest Co. Stock. b. Compute the balance of investment in Crest CO. Stock for December 31, 2012. a.

College Accounting, Chapters 1-27
College Accounting, Chapters 1-27
23rd Edition
ISBN:9781337794756
Author:HEINTZ, James A.
Publisher:HEINTZ, James A.
Chapter21: Corporations: Taxes, Earnings, Distributions, And The Statement Of Retained Earnings
Section: Chapter Questions
Problem 11SPA
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January 30 of erred stock.$75 par. Ing transactions were completed during the Jan. 30 Issued 300,000 shares of common stock at par for cash 31 Issued 750 shares of common stock at par to an attorney in payment of legal fees for organizing the corporation. VFeb 21 Issued 32,000 shares of common stock in exchange for land., buildings, and equipment with fair market prices of $150,000, $460.000 and $90,000 respectively March 2 Issued 15,000 shares of preferred stock at $77.50 for cash Journalize the transactions. 142. McCool Corporation wholesales repair products to equipment manufacturers. On April 1, 2010 McCool Corporation issued $30,00,000 of five year 10% bonds at a market (effective) interest rate of 8%, receiving cash of $32,466,500. Interest is payable semiannually on April 1 and October 1. Journalize the entries to record the following (Amortize premium by straight line method) Sale of bonds on April 1, 2012 First interest payment on Oct. 1, 2012, and amortization of bond premium for six months (round to the nearest dollar) Explain briefly why the company was able to issue bonds for $32,446,500 rather than for the face amount of $30,000,000 a. b. c. 3. On January 10, 2012 Badger Co. purchased 30% of the outstanding stock of Crest Co. for $123.000. Crest paid total dividends to all shareholders of $15,000 on July 15. crest had a net loss of $25,000 for 2012 Journalize Badger's purchase of the stock, receipt of dividend and adjusting entry for the equity loss in Crest Co. Stock. b. Compute the balance of investment in Crest CO. Stock for December 31, 2012. a.
Transcribed Image Text:January 30 of erred stock.$75 par. Ing transactions were completed during the Jan. 30 Issued 300,000 shares of common stock at par for cash 31 Issued 750 shares of common stock at par to an attorney in payment of legal fees for organizing the corporation. VFeb 21 Issued 32,000 shares of common stock in exchange for land., buildings, and equipment with fair market prices of $150,000, $460.000 and $90,000 respectively March 2 Issued 15,000 shares of preferred stock at $77.50 for cash Journalize the transactions. 142. McCool Corporation wholesales repair products to equipment manufacturers. On April 1, 2010 McCool Corporation issued $30,00,000 of five year 10% bonds at a market (effective) interest rate of 8%, receiving cash of $32,466,500. Interest is payable semiannually on April 1 and October 1. Journalize the entries to record the following (Amortize premium by straight line method) Sale of bonds on April 1, 2012 First interest payment on Oct. 1, 2012, and amortization of bond premium for six months (round to the nearest dollar) Explain briefly why the company was able to issue bonds for $32,446,500 rather than for the face amount of $30,000,000 a. b. c. 3. On January 10, 2012 Badger Co. purchased 30% of the outstanding stock of Crest Co. for $123.000. Crest paid total dividends to all shareholders of $15,000 on July 15. crest had a net loss of $25,000 for 2012 Journalize Badger's purchase of the stock, receipt of dividend and adjusting entry for the equity loss in Crest Co. Stock. b. Compute the balance of investment in Crest CO. Stock for December 31, 2012. a.
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