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?

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?

Cornerstones of Financial Accounting

4th Edition

ISBN:9781337690881

Author:Jay Rich, Jeff Jones

Publisher:Jay Rich, Jeff Jones

Chapter10: Stockholder's Equity

Section: Chapter Questions

Problem 57E: Outstanding Stock Lars Corporation shows the following information in the stockholders equity...

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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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