Acc 206 Chapter Two And Three

Solutions to assignment of ccchapman86 (July 23) Star Corporationa)Increase in Preferred Stock account ($580,000 - $500,000)÷ Par value per preferred shareNumber of preferred shares issued in 20X6b)Increase in Common Stock account ($2,350,000 - $1,750,000)Increase in Paid-in Capital in Excess of Par - CommonTotal increase in common stock accounts÷ Increase in number of common shares ($600,000 / $10)Average issue price per common share issued in 20X6c)20X620X5IncreaseTotal stockholders' equityLess: Retained earningsPaid-in capitald)Preferred stock, $100 par valueCommon stock, $10 par valueTotal legal capital Southlake CorporationCase ACase BCase CTotal par value of bondsx Quoted priceCash inflow on the issuance datex Annual coupon interest rateAnnual coupon interest paymentx Number of years to maturityTotal coupon interest paymentsAdd: Par value of the bondsTotal cash outflow through maturityDiscount (Premium) on bondsTotal borrowing costs over the life of bondsCoupon interest ($900,000 x 8% x 10/12)Amortization of discount ($36,000 x 10/120)Amortization of premium ($45,000 x 10/120)Interest expense, 20X1e)Amortization - 20X1f)Premium on bonds n/aLess: Amortization of premium Unamortized premium, Dec. 31, 20X1g)Discount on bonds Less: Amortization of discountUnamortized discount, Dec. 31, 20X1h)Par value of bondsLess: Unamortized discount Add: Unamortized premiumBonds carrying value, Dec. 31, 20X1Chapter 3 Interstate ManufacturingBrassWages and salaries - machine operatorsTotal direct materialsTotal direct laborTotal prime costsTotal direct labor