WileyPLUS Pyment Opp Class Specifications Sorted https://edugen.wileyplus.com/edugen/student/mainfr.uni BACK PRINTER VERSION NE FULL SCREEN CALCULATOR Exercise 15-4 Your answer is partially correct. Try again. Skysong Corporation is a regional company which is an SEC registrant. The corporation's securities are thinly traded on NASDAQ. Skysong Corp. has issued 14,500 units. Each unit consists of a $725 par, 12% subordinated debenture and 15 shares of $7 par common stock. The units were sold to outside investors for cash at $1,276 per unit. Prior to this sale, the 2-week ask price of common stock was $58 per share. Twelve percent is a reasonable mjarket yield for the debentures, and therefore the par value of the bonds is equal to the fair value. (a) Prepare the journal entry to record Skysong's transaction, under the following conditions. (Round answers to 0 decimal places, e.g. $38,487. Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts.) (1) Employing the incremental method. (2) Employing the proportional method, assuming the recent price quote on the common stock reflects fair value. No. Account Titles and Explanation Debit Credit 1. Cash 18,502,000 Bonds Payable 10,512,500 Common Stock 1,522,500 Paid-in Capital in Excess of Par - Common Stock 6,467,000 earch 9:58 AM
WileyPLUS Pyment Opp Class Specifications Sorted https://edugen.wileyplus.com/edugen/student/mainfr.uni BACK PRINTER VERSION NE FULL SCREEN CALCULATOR Exercise 15-4 Your answer is partially correct. Try again. Skysong Corporation is a regional company which is an SEC registrant. The corporation's securities are thinly traded on NASDAQ. Skysong Corp. has issued 14,500 units. Each unit consists of a $725 par, 12% subordinated debenture and 15 shares of $7 par common stock. The units were sold to outside investors for cash at $1,276 per unit. Prior to this sale, the 2-week ask price of common stock was $58 per share. Twelve percent is a reasonable mjarket yield for the debentures, and therefore the par value of the bonds is equal to the fair value. (a) Prepare the journal entry to record Skysong's transaction, under the following conditions. (Round answers to 0 decimal places, e.g. $38,487. Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts.) (1) Employing the incremental method. (2) Employing the proportional method, assuming the recent price quote on the common stock reflects fair value. No. Account Titles and Explanation Debit Credit 1. Cash 18,502,000 Bonds Payable 10,512,500 Common Stock 1,522,500 Paid-in Capital in Excess of Par - Common Stock 6,467,000 earch 9:58 AM
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Question
Transcribed Image Text:WileyPLUS
Pyment Opp
Class Specifications Sorted
https://edugen.wileyplus.com/edugen/student/mainfr.uni
BACK
PRINTER VERSION
NE
FULL SCREEN
CALCULATOR
Exercise 15-4
Your answer is partially correct. Try again.
Skysong Corporation is a regional company which is an SEC registrant. The corporation's securities are thinly traded on
NASDAQ. Skysong Corp. has issued 14,500 units. Each unit consists of a $725 par, 12% subordinated debenture
and 15 shares of $7 par common stock. The units were sold to outside investors for cash at $1,276 per unit. Prior to this
sale, the 2-week ask price of common stock was $58 per share. Twelve percent is a reasonable mjarket yield for the
debentures, and therefore the par value of the bonds is equal to the fair value.
(a) Prepare the journal entry to record Skysong's transaction, under the following conditions. (Round answers to 0
decimal places, e.g. $38,487. Credit account titles are automatically indented when amount is entered. Do not
indent manually. If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts.)
(1) Employing the incremental method.
(2) Employing the proportional method, assuming the recent price quote on the common stock reflects fair value.
No. Account Titles and Explanation
Debit
Credit
1.
Cash
18,502,000
Bonds Payable
10,512,500
Common Stock
1,522,500
Paid-in Capital in Excess of Par - Common Stock
6,467,000
earch
9:58 AM
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