Homework Help in Financial accounting

| September 29, 2018

Problem [2]
The
charter for Zippy Inc. authorizes the company to issue 500,000 shares of $7,
no-par preferred stock and 1,100,000 shares of common stock with $1 par value.
During its start-up phase, Zippy Inc. computed the following transactions:
2012
April 6 Issued 550 shares of
common stock to the promoters who organized the corporation, receiving cash of
$16,500.
April 12 Issued 650 shares of
preferred stock for cash of $28,000.
April 14 Issued 1,800 shares of
common stock in exchange for land with a market value of $22,000.
Required:
1.
Prepare the journal entries for the month of April, 2012. [6 points each]
2.
Prepare the stockholder’s equity section of Zippy’s balance sheet at
December 31, 2012. Assume that the company earned net income of $38,000 during
this period. [9 points]

Problem [3]
NHS
Co. issued $350,000 of 10-year bonds payable on January 1. NHS pays interest
each January 1 and July 1 and amortizes any discount or premium by the
straight-line method. NHS issued the bonds at a price of $430,000 when the
market rate was below 5%.
Required:
Journalize NHS’s issuance of the bonds
and first semiannual interest
payment. Explanations are not required. [7 points each]

Problem [3]
Del Mare Inc. earned net income of
$210,000 during the year ended December 31, 2012. On December 15, 2012, Del
Mare Inc. declared the annual cash dividend on its 3% preferred stock (total
par value, $170,000) and a $0.80 per share cash dividend on its common stock
(95,000 shares outstanding). Del Mare Inc. then paid the dividends on January
4, 2013.
Required:
Journalize for Del Mare Inc.
a.
Declaring the cash dividends on December 15, 2012 [7 points]
b.
Paying the cash dividends on January 4, 2013. [7 points]

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