60.1K

Verified Solution

Link Copied!

you can just answer the first or second page

ACCT 301 Chapter 10 Review 1. Johnson Company issued 7 year bonds dated January 1, 2019 that pays interest semiannually on June 30 and December 31. The bonds have a $500,000 par value, an annual contract rate of 6%. The market Interest rate on the issue date was 4% A Calculate the bond issue price B. Write the journal entry to record the issuance of the bond C Johnson uses straight line amortization of bond discount or bond premium. Calculate the first semi- annual interest payment D. Calculate the interest expense to be recorded for the first semi-annual interest payment. E. Write the journal entry to record the first semi-annual interest payment F. What is the interest expense to be recorded with the 3rd semi-annual interest payment? 2. Several years later, when the unamortized premium on Johnson Company's bond was $43.245, the Company retired the bonds by buying them on the open market at 102 A What is the gain or loss on this retirement? B. Write the journal entry to record the retirement of the bonds interest rate on January 1, 2019 when the bonds were 2. Same as everything above, except the market interest rate on issued was A. Calculate the bond issue price B. Write the journal entry to record the issuance of the bond scount or bond premium. Calculate the first semi- straight line amortization of bond discount or bond premium. Calculate annual interest payment D. Calculate the interest expense to be recorded for the first semi-annual interest pay E. Write the journal entry to record the first semi-annual interest payment F. What is the interest expense to be recorded with the 3 semi-annual interest payment? 4Several years later, when the unamortized discount on Johnson Company's bond was $41.488.46, the Company retired the bonds by buying them on the open market at 102. A. What is the gain or loss on this retirement? B. Write the journal entry to record the retirement of the bonds ACCT 301 - Chapter 11 Review L. OM 2019 Johnson Company issued 8,000 shares of $5 common stock in exchange for land worth $0.00 with the journal entry to record the issuance of this stock. 2. On September 1, 2019 Johnson Company issued 1,000 shares of $100 par, 8% cumulative preferred stock for $125.000 cash. Write the journal entry to record the issuance of this stock. 3. On October 1, 2019 Johnson Company purchased 3,000 shares of its own stock for $10 per share. witte the journal entry to record this transaction 4. On October 25, 2019 Johnson Company sold 2000 shares of treasury stock for $12 per share. Write the journal entry to record this transaction. 5. On October 31, 2019 Johnson Company sold the remaining shares of treasury stock for $6 per share. Write the journal entry to record this transaction. 6. Johnson Company paid the following dividends December 20, 2019 $0 December 20, 2020 $5,000 December 20, 2021 $25,000 Calculate the amount of dividends paid to preferred stockholders and common stockholders each year. Be sure to keep track of dividends in arrears

Answer & Explanation Solved by verified expert

See Answer