Part1. Please explain how to calculate the after stock divendend for the Balance sheet given the below information. At the beginning of the year, the stockholders' equity section of the balance sheet of Solutions Corporation reflected the following:           Common stock ($12 par value; 65,000 shares authorized, 30,000 shares outstanding) $ 360,000   Additional paid-in capital   120,000   Retained earnings   580,000       On February 1, the board of directors declared a 60 percent stock dividend to be issued April 30. The market value of the stock on February 1 was $15 per share. The market value of the stock on April 30 was $18 per share. 1a. For comparative purposes, prepare the Stockholders’ Equity section of the balance sheet immediately before the stock dividend and immediately after the stock dividend.           SOLUTIONS CORPORATION Balance Sheet (Partial) At February 1, This Year   Stockholders’ Equity   Before Stock Dividend After Stock Dividend Contributed capital:     Common stock $360,000   Additional paid-in capital 120,000   Retained earnings 580,000   Total stockholders’ equity $1,060,000 $0   Part2: Please explain how to calculate a, b & c given the below information. Park Corporation is planning to issue bonds with a face value of $2,000,000 and a coupon rate of 10 percent. The bonds mature in 10 years and pay interest semiannually every June 30 and December 31. All of the bonds were sold on January 1 of this year. Park uses the effective-interest amortization method and also uses a premium account. Assume an annual market rate of interest of 8.5 percent. (FV of $1, PV of $1, FVA of $1, and PVA of $1) (Use the appropriate factor(s) from the tables provided.) a.&b. Prepare the journal entry to record the issuance of the bonds and the interest payment on June 30 of this year. c. How will Park present its bonds on its June 30 balance sheet?

Question

Part1. Please explain how to calculate the after stock divendend for the Balance sheet given the below information.

At the beginning of the year, the stockholders' equity section of the balance sheet of Solutions Corporation reflected the following:

 

       
Common stock ($12 par value; 65,000 shares authorized, 30,000 shares outstanding) $ 360,000  
Additional paid-in capital   120,000  
Retained earnings   580,000  
 

 

On February 1, the board of directors declared a 60 percent stock dividend to be issued April 30. The market value of the stock on February 1 was $15 per share. The market value of the stock on April 30 was $18 per share.

1a. For comparative purposes, prepare the Stockholders’ Equity section of the balance sheet immediately before the stock dividend and immediately after the stock dividend.

 
 
 
 
 
SOLUTIONS CORPORATION
Balance Sheet (Partial)
At February 1, This Year
  Stockholders’ Equity
  Before Stock Dividend After Stock Dividend
Contributed capital:    
Common stock $360,000  
Additional paid-in capital 120,000  
Retained earnings 580,000  
Total stockholders’ equity $1,060,000 $0
 
Part2: Please explain how to calculate a, b & c given the below information.

Park Corporation is planning to issue bonds with a face value of $2,000,000 and a coupon rate of 10 percent. The bonds mature in 10 years and pay interest semiannually every June 30 and December 31. All of the bonds were sold on January 1 of this year. Park uses the effective-interest amortization method and also uses a premium account. Assume an annual market rate of interest of 8.5 percent. (FV of $1, PV of $1, FVA of $1, and PVA of $1) (Use the appropriate factor(s) from the tables provided.)

a.&b. Prepare the journal entry to record the issuance of the bonds and the interest payment on June 30 of this year.

c. How will Park present its bonds on its June 30 balance sheet?
 

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