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2. The Jeremy Company's fiscal year ends on December 31st. On July 1, 2021, Jeremy authorized $1,000,000 of six-percent, eight-year, callable bonds, which were to pay interest annually on each June 30th. On November 30, 2022, Jeremy issued half of the bonds, at a discount, in return for both cash of $232,350 and a building that had a fair value of $240,000. All interest accrued to the issuance date was ALSO paid in cash to Jeremy. On March 1, 2024, Jeremy paid all interest due to date and then called the bonds, paying each investor $1,200 in cash for each bond held. Prepare only the journal entries related to the bonds on November 30, 2022, and March 1, 2024.

2. The Jeremy Company's fiscal year ends on December 31st. On July 1, 2021, Jeremy authorized $1,000,000 of six-percent, eight-year, callable bonds, which were to pay interest annually on each June 30th. On November 30, 2022, Jeremy issued half of the bonds, at a discount, in return for both cash of $232,350 and a building that had a fair value of $240,000. All interest accrued to the issuance date was ALSO paid in cash to Jeremy. On March 1, 2024, Jeremy paid all interest due to date and then called the bonds, paying each investor $1,200 in cash for each bond held. Prepare only the journal entries related to the bonds on November 30, 2022, and March 1, 2024.

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Need help questions 2 and 3.
2. The Jeremy Company's fiscal year ends on December 31st. On July 1, 2021, Jeremy authorized $1,000,000 of six-percent, eight-year, callable bonds, which were to pay interest annually on each June 30th. On November 30, 2022, Jeremy issued half of the bonds, at a discount, in return for both cash of $232,350 and a building that had a fair value of $240,000. All interest accrued to the issuance date was ALSO paid in cash to Jeremy. On March 1, 2024, Jeremy paid all interest due to date and then called the bonds, paying each investor $1,200 in cash for each bond held. Prepare only the journal entries related to the bonds on November 30, 2022, and March 1, 2024. 3. Hatz & Hornes, Inc. had the following items in its capital structure on December 31, 2022: Additional paid-in capital. $ 380,000 Common stock, $10 stated value, $12 market value, issued January 2, 2021 Preferred stock, 6%, $8 par value, convertible in two years into 73,000 common shares, issued at par value on July 1, 2022 600,000 1,600,000 Stock warrants, issued in exchange for legal services at the company's formation, convertible into 650 shares of common stock, but not earlier than 2024 (conversion would require a cash payment to the company from the warrant-holders, which would be sufficient to acquire 150 shares of common stock at the current market price) Treasury stock, common, acquired at $14 per share on November 1, 2021 ..... Stock options, common, $13 exercise price, issued April 1, 2022, to be exercised no earlier than March 31, 2025, convertible into 12,500 shares (less treasury stock of 3,700 shares that could be acquired with hypothetical cash received upon exercise) 2 10,000 140,000 The company's net incom for 2022 was $348,000; the Board of Directors had not yet declared the appropriate dividend for the preferred shareholders. Prepare a schedule of the earnings per share that Hatz & Hornes would report for the year ended December 31, 2022.
Transcribed Image Text:2. The Jeremy Company's fiscal year ends on December 31st. On July 1, 2021, Jeremy authorized $1,000,000 of six-percent, eight-year, callable bonds, which were to pay interest annually on each June 30th. On November 30, 2022, Jeremy issued half of the bonds, at a discount, in return for both cash of $232,350 and a building that had a fair value of $240,000. All interest accrued to the issuance date was ALSO paid in cash to Jeremy. On March 1, 2024, Jeremy paid all interest due to date and then called the bonds, paying each investor $1,200 in cash for each bond held. Prepare only the journal entries related to the bonds on November 30, 2022, and March 1, 2024. 3. Hatz & Hornes, Inc. had the following items in its capital structure on December 31, 2022: Additional paid-in capital. $ 380,000 Common stock, $10 stated value, $12 market value, issued January 2, 2021 Preferred stock, 6%, $8 par value, convertible in two years into 73,000 common shares, issued at par value on July 1, 2022 600,000 1,600,000 Stock warrants, issued in exchange for legal services at the company's formation, convertible into 650 shares of common stock, but not earlier than 2024 (conversion would require a cash payment to the company from the warrant-holders, which would be sufficient to acquire 150 shares of common stock at the current market price) Treasury stock, common, acquired at $14 per share on November 1, 2021 ..... Stock options, common, $13 exercise price, issued April 1, 2022, to be exercised no earlier than March 31, 2025, convertible into 12,500 shares (less treasury stock of 3,700 shares that could be acquired with hypothetical cash received upon exercise) 2 10,000 140,000 The company's net incom for 2022 was $348,000; the Board of Directors had not yet declared the appropriate dividend for the preferred shareholders. Prepare a schedule of the earnings per share that Hatz & Hornes would report for the year ended December 31, 2022.
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