80.2K

Verified Solution

Link Copied!

Bodkin, Inc. has 5,000 shares of 6%, $100 par value, cumulative preferred stock and 50,000 shares of $1 par value common stock at December 31, 2016, and December 31, 2017. The board directors declared and paid a $25,000 dividend in 2016. In 2017, $65,000 of dividends are declared and paid. What are the dividends received by the preferred and common shareholders in 2017? January 1, Besalius Inc. issued $1,000,000, 9% bonds for $938, 554. The market rate of interest for these bonds is 10%. Interest is payable annually on December 31. Besalius uses the effective interest discount of amortizing bond discount. At the end of the first year, Besalius should report unamortized bond discount of: a. $54, 900. b. $57, 591. c. $51, 610. d. $51,000. In the liquidation of a partnership, it is necessary to (1) distribute cash to the partners, (2) sell noncash assets, (3) allocate any gain or loss on realization to the partners, and (4) pay liabilities. These steps should be performed in the following order: a. (2), (3), (4), (1) b. (2), (3), (1), (4). c. (3), (2), (1), (4). d. (3), (2), (4), (1). Colson Inc. converts $600,000 of bonds sold at face value into 10,000 shares of common stock, par value $1. Both the bonds and the stock have a market value of $760,000. What amount should be credited to Paid-in Capital in Excess of Par-Common Stock as a result of the conversion? a. $10,000. b. $160,000. c, $600,000. d. $590,000. Both a stock dividend and a stock split will a. decrease total retained earnings and increase total paid-in-capital. b. increase the number of shares outstanding. c. decrease total retained earnings. d. increase total paid-in-capital

Answer & Explanation Solved by verified expert

See Answer