Problems:
Issuing Bonds at Face Value-To illustrate, assume that Devor Corporation issued 100, 5-year, 10%, $1,000 bonds dated January 1, 2007, at 100 (100% of face value). Assume interest is payable annually on January 1. The entry to record the sale is:$100,000, 5-year, 10% bonds at 98 (98% of face value) with interest payable on January 1. The entry to record the issuance is:
- To illustrate bonds sold at a discount, assume that on January 1, 2007, Candlestick, Inc., sells $100,000, 5-year, 10% bonds at 98 (98% of face value) with interest payable on January 1. The entry to record the issuance is:
To illustrate bonds sold at a premium, assume the Candlestick, Inc. bonds described before are sold at 102 (102% of face value) rather than 98. The entry to record the sale is:Net pass Company has 300,000 shares of common stock authorized, 270,000 shares issued, and 100,000 shares of treasury stock. The company's board of directors declares a dividend of $1 per share of common stock. What is the total amount of the dividend that will be paid?On May 20, the board of directors for Auction.com declared a cash dividend of 50 cents per share payable to stockholders of record on June 14. The dividends are paid on July 14. The company has 500,000 shares of stock outstanding. Closing entries are recorded on July 31. Prepare any necessary journal entries for each date.Colliers, Inc., has 100,000 shares of cumulative preferred stock outstanding. The preferred stock pays dividends in the amount of $2 per share, but because of cash flow problems, the company did not pay any dividends last year. The board of directors plans to pay dividends in the amount of $600,000 this year. What amount will go to preferred stockholders? How much will be available for common stock dividends?