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Tamisha McQuilkin Final Exam
Tamisha McQuilkin Final Exam
8--8
1
2007
2008
Sold 392,000
Value -376,000
Gain 15,750
Sold 392,000
Value -332,500
Gain 59,500
9--11
1
$9,750 x 5.895 = $57,476
2
$42,487/$21,600 = 1.97
3
$15,000/1.714 = $8,751
4
$15,026/$5,800 = 2.59
10--3
1
Column 1 Column 2 Column 3
Date Cash Interest Interest Expense Premium Amortized
10% 8% Col. 1 - Col. 2
1/1/2008 - - -
12/31/2008 $1,000 864 136
12/31/2009 1,000 853 147
12/31/2010 1,000 842 158
12/31/2011 1,000 829 171
12/31/2012 1,000 809 191
2
Interest expense $4,197
Cash interest payment 5000
Premium amortized 803
3
Bonds payable $10,000
Premium 362
Payment 10,362
10,803
10,667
10,520
10,362
10,191
10,000
11--5
1
a.
Retained earnings and total stockholders' equity decreases
b.
The stock holders equity accounts:
Dividends increased by $7,500
Common stock increased by $6000
Retained earnings decreased by $13,500
Total stockholders equity did not change
c.
Retained earnings and total stockholders' equity decreased by $7875
d.
Nothing changes
2
Frederiksen's Inc.
Partial Balance Sheet
31-Dec-08
Stockholders' Equity
3
A stock dividend occurs when a
company declares and issues
additional shares of its own stock
to existing stockholders.
1 2
Ratio Heartland Inc. Industry Average