PT FINDING, started operations in 2017. To obtain funding, the Company decided to create 2 schemes through the issuance of shares and applying for a loan to the Bank. The following are transactions related to the funding event: Issued 100,000 shares with a par value of $100 to the limited public Applying foraloanto Bank inthe amountof $500,000 byissuing 1 Aug 17 10 Aug 17 a 5-year 12% Bond at a realization rate of 97% Issued 150,000 sharesto acquire Land worth$250,000 with apar value of $100 20 sep 17 Received cash amounting to $300,000 to be exchanged for 200,000 shares. Thepar valueofthesharesatthetime ofthetransaction remained $100 1 oct 17 30 nov 17 Based on the evaluation, the company gets a net profit (net income) per 6 months of $700,000 30 nov 17 Declared and paid dividendsto allshareholders with a value of $25 pershare. a. Preparejournal entries for the transactions! b. Calculate how much funding costs must be paid by the company from the 2 selected financing schemes until November, 30 2017! c. which one is more profitable issuing shares or issuing debt securities (see the event in question).
PT FINDING, started operations in 2017. To obtain funding, the Company decided to create 2 schemes through the issuance of shares and applying for a loan to the Bank. The following are transactions related to the funding event: Issued 100,000 shares with a par value of $100 to the limited public Applying foraloanto Bank inthe amountof $500,000 byissuing 1 Aug 17 10 Aug 17 a 5-year 12% Bond at a realization rate of 97% Issued 150,000 sharesto acquire Land worth$250,000 with apar value of $100 20 sep 17 Received cash amounting to $300,000 to be exchanged for 200,000 shares. Thepar valueofthesharesatthetime ofthetransaction remained $100 1 oct 17 30 nov 17 Based on the evaluation, the company gets a net profit (net income) per 6 months of $700,000 30 nov 17 Declared and paid dividendsto allshareholders with a value of $25 pershare. a. Preparejournal entries for the transactions! b. Calculate how much funding costs must be paid by the company from the 2 selected financing schemes until November, 30 2017! c. which one is more profitable issuing shares or issuing debt securities (see the event in question).
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Transcribed Image Text:PT FINDING, started operations in 2017. To obtain funding, the Company decided to create 2
schemes through the issuance of shares and applying for a loan to the Bank. The following are
transactions related to the funding event:
Issued 100,000 shares with a par value of $100 to the limited public
Applying foraloanto Bank inthe amountof $500,000 byissuing
1 Aug 17
10 Aug 17
a 5-year 12% Bond at a realization rate of 97%
Issued 150,000 sharesto acquire Landworth$ 250,000 withapar
value of $100
20 sep 17
Received cash amounting to $300,000 to beexchanged for 200,000 shares. The par
value ofthe sharesatthetime ofthetransaction remained $100
1 oct 17
30 nov 17
Based on the evaluation, the company gets a net profit (net income) per 6
months of $700,000
Declared and paid dividendsto allshareholders with avalue of $25 pershare.
30 nov 17
a. Prepare journal entries for the transactions!
b. Calculate how much funding costs must be paid by the company from the 2 selected financing
schemes until November, 30 2017!
c. which one is more profitable issuing shares or issuing debt securities (see the event in question).
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