Long-Term Liabilities and Stockholders Equity- Journal Entry: Bonds and Stocks, accounting homework help
We're the ideal place for homework help. If you are looking for affordable, custom-written, high-quality and non-plagiarized papers, your student life just became easier with us. Click either of the buttons below to place your order.
Order a Similar Paper
Order a Different Paper
Bonds
Intel Inc. is the pioneer in the manufacture of microprocessors for
computers. The company’s fiscal year runs from April 1 to March 31. On
4/1/2015, Intel Issued $5,000,000 of 11% Bonds due in 10 years. The
interest is payable annually on April 1. The market rate of interest on
that date for bonds of similar risk is 10%.
Prepare the journal entry for the issuance of the bonds and on the first interest payment date.
Use the Excel Template linked at the bottom of this page to prepare
an amortization schedule for the bonds. Any written comments should be
included in Excel’s comments function and formatted according to APA writing requirments
Stocks
Presented below is the stockholders’ equity section of AMR
Corporation. All amounts are in millions except for number of shares and
par value.
|
Stockholders’ Equity (Deficit) |
Current |
Prior |
|
Preferred stock – 20,000,000 shares authorized; none issued |
$ -0- |
$ -0- |
|
Common stock – $1 par value; 750,000,000 shares authorized; 182,350,259 shares issued |
182 |
182 |
|
Additional paid-in capital |
2,521 |
2,605 |
|
Treasury shares at cost: current year-21,194,312; prior year-22,768,027 |
(1,308) |
(1,405) |
|
Accumulated other comprehensive loss |
(664) |
(785) |
|
Accumulated deficit |
(1,312) |
(551) |
|
$ (581) |
$ 46 |
|
- Explain why the common stock is classified as part of the stockholders’ equity.
- Explain why treasury stock is not classified as an asset.
- Explain what is meant by “Accumulated other comprehensive loss.”
- Why is the accumulated deficit larger in the current year than in the prior year?
- Compute book value per share for AMR for the current year.
Do you need academic writing help? Our quality writers are here 24/7, every day of the year, ready to support you! Instantly chat with a customer support representative in the chat on the bottom right corner, send us a WhatsApp message or click either of the buttons below to submit your paper instructions to the writing team.
Order a Similar Paper
Order a Different Paper
