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:
(a) Bought 300 shares of common stock as treasury shares at $62
(b) Sold 80 shares of treasury stock at $60
(c) Sold four treasury shares at $68
(Points : 30)