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Present value of annuity for 10 periods at 10%
Present value of annuity for 10 periods at 12%
Present value of annuity for 20 periods at 5%
Present value of annuity for 20 periods at 6%
6.145
5.650
12.462
11.470
2) Without prejudice to your solution in part (a), assume that the
issue price was $2,652,000. Prepare the amortization table for 2015,
assuming that amortization is recorded on interest payment dates
using the effective-interest method.
3) The following information pertains to Parsons Co.:
Preferred stock, cumulative:
Par value per share
$100
Dividend rate
8%
Shares outstanding
9,000
Dividends in arrears
none
Common stock:
Par value per share
$10
Shares issued
100,000
Dividends paid per share
$2.00
Market price per share
$47
Additional paid-in capital
$480,000
Unappropriated retained earnings (after closing)
$250,000
Retained earnings appropriated for contingencies
$280,000
Common treasury stock:
Number of shares
9,000
Total cost
$240,000
Net income
$610,000
Compute (assume no changes in balances during the past year):
(Round per share and ratios to 2 decimal places, e.g. $15.75 or
15.75%.)
(a)
Total amount of stockholders' equity in the balance
sheet
$