Answer
The answer and procedures of the exercise are attached in the following archives.
Explanation
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Answer:
1. $840,000
2. 2.1
Explanation:
1. Net income available to shareholders
Net income. $960,000
Less : Preferred stock $120,000
Net income available. $840,000
to common stockholders
2. Basic earnings per share for 2015
Earnings per share = Net income available to common stockholders / weighted average shares of common stock
= $840,000 / $400,000
= 2.1
Answer:
$877.30
Explanation:
The cost of one table is $762.87
mark-up is 15% based on the selling price
If mark-up is 15%, then selling price will be 115 % of the cost.
Cost = $762. 87
$762.87 = 100 %
115% =762.87/100 x 115
=7.6287 x 115
=877.30
selling price will $877.30
Answer:
1. $550,000
Explanation:
1. It is given in the question that the stated interest rate and the market interest rate both are having the same rate, i.e, 12%.
Hence, the bonds are issued at the face value that is $550,000.
2. The Journal entries are as follows:
(i) On January 1,
Cash A/c Dr. $550,000
To bonds payable $550,000
(To record the bond issuance)
(ii) On December 31,
Interest Expense A/c Dr. $66,000
To cash A/c $66,000
(To record the first interest payment on December 31 assuming no interest has been accrued earlier in the year)
Workings:
Interest expense = $550,000 × 12%
= $66,000