60.1K

Verified Solution

Link Copied!

Use the following to answer questions 19-20: On January 1, 2017, Ellison Co. issued eight-year bonds with a face value of $6,000,000 and a stated interest rate of 6%, payable semiannually on June 30 and December 31. The bonds were sold to yield 8%. Table values are: Present value of 1 for 8 periods at 627 6% Present value of 1 for 8 periods at 8% .540 Present value of 1 for 16 periods at 623 3% Present value of 1 for 16 periods at 4% 534 6.210 Present value of annuity for 8 periods at 6% Present value of annuity for 8 periods at 8% Present value of annuity for 16 periods at 3% Present value of annuity for 16 5.747 12.561 11.652 periods at 4% 19. The present value of the principal is A) $3,204,000. B) $3,240,000. C) $3,738,000. D) $3,762,000. 20. The present value of the interest is A) $2,068,920. B) $2,097,360. C) $2,235,600. D) $2,260,980. al 21. Percy Corporation was organized on January 1, 2018, with an authorization of 1,200,000 shares of common stock with a par value of $6 per share. During 2018, the corporation had the following capital transactions: January 5 July 28 December 31 sold the 80,000 shares held in treasury@ issued 600,000 shares@ $10 per share purchased 80,000 shares@ $11 per share $18 per share Percy used the cost method to record the purchase and reissuance of the treasury shares. What is the total amount of additional paid-in capital as of December 31, 2018? S-0- A) $1,840,000. B) C) $2,400,000. D) $2,960,000

Answer & Explanation Solved by verified expert

See Answer