(b) Prepare the entry to record the employer payroll taxes. (Points :
30)
Question 3. 3. (TCO D) On January 1, 2010, Solis Co. issued its 10%
bonds in the face amount of $3,000,000, which mature on January 1,
2020. The bonds were issued for $3,405,000 to yield 8%, resulting in
bond premium of $405,000. Solis uses the effective-interest method
of amortizing bond premium. Interest is payable annually on
December 31. At December 31, 2010, Solis's adjusted unamortized
bond premium is what amount? Please show computations. (Points :
35)
Question 4. 4.
(TCO E) The original sale of the 450 par-value common shares of
Gray Company was recorded as follows:
Record the treasury stock transactions (given below) under the cost
method.
Transactions: