A corporation began be issuing 1 million share of $1 common stock.   The proceeds from this common stock issuance was $10,000,000. The corporation issued a first-mortgage bond for $25,000,000.   It was issued at par value, the coupon interest rate is 5% and the life is 10 years.   The corporation established a line of credit with a commercial bank and immediately borrowed $2,000,000 from this line of credit. This amount is to be repaid in 6 months.   Construct a partial classified balance sheet in good form based on the transactions above.

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
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A corporation began be issuing 1 million share of $1 common stock.

 

The proceeds from this common stock issuance was $10,000,000. The corporation issued a first-mortgage bond for $25,000,000.

 

It was issued at par value, the coupon interest rate is 5% and the life is 10 years.

 

The corporation established a line of credit with a commercial bank and immediately borrowed $2,000,000 from this line of credit. This amount is to be repaid in 6 months.

 

Construct a partial classified balance sheet in good form based on the transactions above.

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