70.2K

Verified Solution

Link Copied!

Looking to complete the equity option section of the financing options worksheet tab, The stock journal entry, the equity option section of the partial balance sheets tab, the ratios tab, and the balance sheet and ratios ( formulas Copy & Pasted with ctrl + "~")

.

OPTION 1 The company could issue $2,500,000 of long-term bonds, due in 8 years with a stated rate of interest, paid semiannually, of 4%. The market rate for similar debt is 6%. The bond issues for 85. OPTION 2 The company could issue $2,000,000 of long-term bonds, due in 7 years with a stated rate of interest, paid semiannually, of 6%. The market rate for similar debt is 4%. The bond issues for 110. OPTION3 The company could issue 300,000 additional shares of $1 par value common stock for $7.50 per share The company will begin paying a dividend to ALL the common shareholders of $0.20 per share and this will continue into the future. Cash Received/Annual Cash Payment Requirement OPTION 3 Cash Received Annual Cash Required number of existing shares number of new shares total shares at year end market price Dividend rate Dividend period PIC year encd PIC > par year end FigMint Consulting and Sales Inc Post Closing Trial Balance December 31, 2022 4 5 Cash 6 Accounts Receivable 198,600 75,580 Allowance for Uncollectible Accounts 8 Supplies 9 Inventory 10 Prepaid Insurance 11 Land 12 Building 13 Accumulated Depr- Building 14 Office Equipment 15 Accumulated Depr-Office Equip 16 Computer Equipment 17 Accumulated Depr-Computer Equip 18 Accounts Payable 19 Utilities Payable 20 Wages Payable 21 Short Term Note Payable 22 Long term Note Payable 23 Mortgage Payable 24 Common Stock ($1 par, 1,000,000, 25 shares authorized, 400,000 issued 26 and outstanding) 27 Retained Earnings 28 29 4,690 56,500 58,596 57,890 260,526 698,950 19,356 356,500 45,600 658,950 debt equity 32,560 56,560 16,850 89,850 485,965 387,590 305,984 400,000 577,087 2,422,092 $ 2,422,092 Building Depreciation Schedule Depreciation for the Year Dep'ble Depreciation Accumulated Book Expense DepreiionValue Asset Cost basis 5 Date 6 1/1/23 545000 7 12/31/23 545000 8 12/31/24 545000 9 12/31/25 545000 10 12/31/26 545000 545000 525200 505400 485600 465800 19800 19800 19800 19800 19800 39600 59400 79200 495000 495000 495000 495000 Depreciation for the Year 15 Asset Cost Dep'ble Depreciation Accumulated Book 17 Date 18 7/1/23 365500 19 12/31/23 365500 20 12/31/24365500 21 12/31/25 365500 22 12/31/26 365500 23 24 basis Expense DepreciionValue 365500 306350 188050 69750 10600 354900 59150 177450 295750 354900 59150 118300 118300 59150 354900 354900 Delivery Equipment Depreciation Schedule Depreciation for the Year 26 27 Depreciation per unit Asset Cost Units of Depreciation Accumulated Book Production Expense Depreciation Value 29 Date 30 9/1/23 405900 31 12/31/23 405900 32 12/31/24 405900 33 12/31/25 405900 34 12/31/26 405900 405900 19650 56850 54598 46850 49125 142125 136495 9125 356775 327745 78155 5900 7225s 327745 214650 OPTION 1 The company could issue $2,500,000 of long-term bonds, due in 8 years with a stated rate of interest, paid semiannually, of 4%. The market rate for similar debt is 6%. The bond issues for 85. OPTION 2 The company could issue $2,000,000 of long-term bonds, due in 7 years with a stated rate of interest, paid semiannually, of 6%. The market rate for similar debt is 4%. The bond issues for 110. OPTION3 The company could issue 300,000 additional shares of $1 par value common stock for $7.50 per share The company will begin paying a dividend to ALL the common shareholders of $0.20 per share and this will continue into the future. Cash Received/Annual Cash Payment Requirement OPTION 3 Cash Received Annual Cash Required number of existing shares number of new shares total shares at year end market price Dividend rate Dividend period PIC year encd PIC > par year end FigMint Consulting and Sales Inc Post Closing Trial Balance December 31, 2022 4 5 Cash 6 Accounts Receivable 198,600 75,580 Allowance for Uncollectible Accounts 8 Supplies 9 Inventory 10 Prepaid Insurance 11 Land 12 Building 13 Accumulated Depr- Building 14 Office Equipment 15 Accumulated Depr-Office Equip 16 Computer Equipment 17 Accumulated Depr-Computer Equip 18 Accounts Payable 19 Utilities Payable 20 Wages Payable 21 Short Term Note Payable 22 Long term Note Payable 23 Mortgage Payable 24 Common Stock ($1 par, 1,000,000, 25 shares authorized, 400,000 issued 26 and outstanding) 27 Retained Earnings 28 29 4,690 56,500 58,596 57,890 260,526 698,950 19,356 356,500 45,600 658,950 debt equity 32,560 56,560 16,850 89,850 485,965 387,590 305,984 400,000 577,087 2,422,092 $ 2,422,092 Building Depreciation Schedule Depreciation for the Year Dep'ble Depreciation Accumulated Book Expense DepreiionValue Asset Cost basis 5 Date 6 1/1/23 545000 7 12/31/23 545000 8 12/31/24 545000 9 12/31/25 545000 10 12/31/26 545000 545000 525200 505400 485600 465800 19800 19800 19800 19800 19800 39600 59400 79200 495000 495000 495000 495000 Depreciation for the Year 15 Asset Cost Dep'ble Depreciation Accumulated Book 17 Date 18 7/1/23 365500 19 12/31/23 365500 20 12/31/24365500 21 12/31/25 365500 22 12/31/26 365500 23 24 basis Expense DepreciionValue 365500 306350 188050 69750 10600 354900 59150 177450 295750 354900 59150 118300 118300 59150 354900 354900 Delivery Equipment Depreciation Schedule Depreciation for the Year 26 27 Depreciation per unit Asset Cost Units of Depreciation Accumulated Book Production Expense Depreciation Value 29 Date 30 9/1/23 405900 31 12/31/23 405900 32 12/31/24 405900 33 12/31/25 405900 34 12/31/26 405900 405900 19650 56850 54598 46850 49125 142125 136495 9125 356775 327745 78155 5900 7225s 327745 214650

Answer & Explanation Solved by verified expert

See Answer