On the first day of its fiscal year, Ramsey Company i

| September 29, 2018

On the first day of its fiscal year, Ramsey Company issued $35,000,000 of 10-year, 9% bonds to finance its operations. Interest is payable semiannually. The bonds were issued at a market (effective) interest rate of 11%, resulting in Ramsey Company receiving cash of $30, 817,399. The company uses the interest method.a. Journalize the entries to record the following:1. Sale of the bonds.2. Prepare an amortization table through December 31, 2014(4 interest periods for this bond issue3. First semiannual interest payment, including amortization of discount. Round to the nearest dollar.4. Second semiannual interest payment, including amortization of discount. Round to the nearest dollar.5. compute the amount of the bond interest expense for the first year.(B) Yates Corporation has the following stockholders’ equity accounts on Jan 1, 2012:Common Stock, $10 par value: $1,500,000Paid-in Capital in Excess of Par: 200,000Retained Earnings: 500,000Total Stockholders’ Equity: $2,200,000The company uses the cost method to account for treasury stock transactions. During 2012, the following treasury stock transactions occurred:April 1 Purchased 10,000 shares at $18 per share.August 1 Sold 4,000 shares at $22 per share.October 1 Sold 4,000 shares at $15 per shareInstructions:(A) Journalize the treasury stock transactions for 2012.(B) Prepare the Stockholders’ Equity section of the balance sheet for Yates Corporation at December 31, 2012. Assume net income was $110,000 for 2012.C. KT Corporation wholesales auto parts to auto manufacturers. On march 1, 2012, Kt corporation issued $17,500,000 of five year, 12% bonds at market (effective) interest rate of 10%, receiving cash of $18,851,252. interest is payable semiannually. KT corporation’s fiscal years begins on March 1. The company uses the interest method.a.Journalize the entries to record the following:1. sale of the bonds.2.prepare an amortization table through 3 interest periods for this bond issue.3. First semiannual interest payment, including amortization of discount. Round to nearest dollar.4.Second semiannual interest payment, including amortization of discount. Round to nearest dollar.5.Compute the amount of the bond interest expense for the first year.

Get a 30 % discount on an order above $ 100
Use the following coupon code:
RESEARCH
Order your essay today and save 30% with the discount code: RESEARCHOrder Now
Positive SSL