Account Title Bonds payable Common stock Year 2 $ 690,000 217,000 35, 000 87,300 Year 1 Treasury stock Retained earnings $1,015,000 130,000 15,000 62,900 Additional information regarding transactions occurring during Year 2: 1. Fox River, Inc. issued $48,900 of bonds during Year 2. The bonds were issued at face value. All bonds retired were retired at face value. 2. Common stock did not have a par value. 3. Fox River, Inc. uses the cost method to account for treasury stock. 4. The amount of net income shown on the Year 2 income statement was $35,600. Required a. Determine the amount of cash flow for the retirement of bonds that should appear on the Year 2 statement of cash flows b. Determine the amount of cash flow from the issue of common stock that should appear on the Year 2 statement of cash flows. c. Determine the amount of cash flow for the purchase of treasury stock that should appear on the Year 2 statement of cash flows. d. Determine the amount of cash flow for the payment of dividends that should appear on the Year 2 statement of cash flows

Account Title Bonds payable Common stock Year 2 $ 690,000 217,000 35, 000 87,300 Year 1 Treasury stock Retained earnings $1,015,000 130,000 15,000 62,900 Additional information regarding transactions occurring during Year 2: 1. Fox River, Inc. issued $48,900 of bonds during Year 2. The bonds were issued at face value. All bonds retired were retired at face value. 2. Common stock did not have a par value. 3. Fox River, Inc. uses the cost method to account for treasury stock. 4. The amount of net income shown on the Year 2 income statement was $35,600. Required a. Determine the amount of cash flow for the retirement of bonds that should appear on the Year 2 statement of cash flows b. Determine the amount of cash flow from the issue of common stock that should appear on the Year 2 statement of cash flows. c. Determine the amount of cash flow for the purchase of treasury stock that should appear on the Year 2 statement of cash flows. d. Determine the amount of cash flow for the payment of dividends that should appear on the Year 2 statement of cash flows

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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The following accounts and corresponding balances were drawn from Dexter Company's Year 2 and Year 1 year-end balance sheets. Account Title Bonds payable Common stock Year 2 $216,800 375,100 Year 1 $300,200 283,500 Other information drawn from the accounting records: 1. Dividends paid during the period amounted to $43,500. 2. There were no bond liabilities issued during the period. Required a. Compute the amount of cash flow associated with the repayment of bond liabilities. b. Compute the amount of cash flow associated with the issue of common stock. c. Prepare the financing activities section of the statement of cash flows. Complete this question by entering your answers in the tabs below. Required A Required B Required C Compute the amount of cash flow associated with the repayment of bond liabilities. Cash flow for the repayment of bond liabilities 13
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Question 6 On January 1, 20B, Lovell company had 600,000 ordinary shares outstanding. On April 1, 20B, an additional 180,000 ordinary shares were issued for cash. Lovell also had P5,000,000 of 8% convertible bonds outstanding during 20B, which are convertible into 150,000 ordinary shares. The bonds are dilutive in the 20B earnings per share computation. No bonds were issued or converted into ordinary shares during 20B. What is the number of shares that should be used in computing diluted earnings per share? 735,000 780,000 885,000 930,000
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PRACTICE QUESTIONS 1-3 1.A company issued 5%, 20-year bonds with a face amount of $80 million. The market yield for bonds of similar risk and maturity is 6%. Interest is paid semiannually. At what price did the bonds sell? 2.A company issued 6%, 15-year bonds with a face amount of $75 million. The market yield for bonds of similar risk and maturity is 6%. Interest is paid semiannually. At what price did the bonds sell? 3. A company issued 5%, 20-year bonds with a face amount of $100 million. The market yield for bonds of similar risk and maturity is 4%. Interest is paid semiannually. At what price did the bonds sell?
A company issues 7 bonds with a par value of $200.000 at par on January 1. The market rte on the date of issuance wes 6% The bonds payinterest semiannualty on Januaryfand Jyt The cm paid on July tin he bondhoitert Mumoie Choce S14000 $12.000 $6.000
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