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each warrant was $4. On December 31, 2003, what amount should Moss
record as discount or premium on issuance of bonds?
Question 14
During 2005, Brad Co. issued 5,000 shares of $100 par convertible
preferred stock for $110 per share. One share of preferred stock can be
converted into three shares of Brad's $25 par common stock at the option
of the preferred shareholder. On December 31, 2006, when the market
value of the common stock was $40 per share, all of the preferred stock
was converted. What amount should Brad credit to Common Stock and
to Additional Paid-in Capital -- Common Stock as a result of the
conversion?
Question 15
A company declared a cash dividend on its common stock on December
15, 2003, payable on January 12, 2004. How would this dividend affect
stockholders' equity on the following dates?
Question 16
Beck Corp. issued 200,000 shares of common stock when it began
operations in 2003 and issued an additional 100,000 shares in 2004.
Beck also issued preferred stock convertible to 100,000 shares of
common stock. In 2005, Beck purchased 75,000 shares of its common
stock and held it in Treasury. At December 31, 2005, how many shares
of Beck's common stock were outstanding?
Question 17
On January 2, 2005, Nast Co. issued 8% bonds with a face amount of
$1,000,000 that mature on January 2, 2011. The bonds were issued to
yield 12%, resulting in a discount of $150,000. Nast incorrectly used the