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 eachJune 30th. On November 30, 2022, Jeremy issued half of the bonds, at a discount, in return forboth cash of $232,350 and a building that had a fair value of $240,000. All interest accrued tothe 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 eachinvestor $1,200 in cash for each bond held.Prepare only the journal entries related to the bonds on November 30, 2022, and March 1,2024.3. Hatz & Hornes, Inc. had the following items in its capital structure on December 31, 2022:Additional paid-in capital.$ 380,000Common stock, $10 stated value, $12 market value,issued January 2, 2021Preferred stock, 6%, $8 par value, convertible in two years into73,000 common shares, issued at par value on July 1, 2022600,0001,600,000Stock warrants, issued in exchange for legal services at the company'sformation, convertible into 650 shares of common stock, but not earlierthan 2024 (conversion would require a cash payment to the companyfrom the warrant-holders, which would be sufficient to acquire 150shares 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 earlierthan March 31, 2025, convertible into 12,500 shares (less treasury stock of 3,700 sharesthat could be acquired with hypothetical cash received upon exercise)210,000140,000The company's net incom for 2022 was $348,000; the Board of Directors had not yetdeclared the appropriate dividend for the preferred shareholders.Prepare a schedule of the earnings per share that Hatz & Hornes would report for the yearended December 31, 2022.

Bonds payable are defined as long-term debt securities to raise capital for the company. These bonds…

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.

Intermediate Accounting: Reporting And Analysis

3rd Edition

ISBN:9781337788281

Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Chapter14: Financing Liabilities: Bonds And Long-term Notes Payable

Section: Chapter Questions

Problem 16E

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