Acct 221 Week 2 Hw Solutions

ACCT 221 Week 2 Hw Solutions
Click Link Below To Buy:
http://hwcampus.com/shop/acct-221-week-2-hw-solutions/

Problem 1

On 1/1/2015, Starburst Company issued 10-year bonds with a face value of $500,000 at 102. The bonds carry a stated interest rate of 7%, with
interest payable semi-annually on January 1 and July 1. Starburst uses the straight-line method of amortizing bond premium or discount.

(a) Prepare the journal entry to record the issuance of the bonds.
(b) Prepare the journal entry to record payment of interest on July 1, 2015.
(c) Prepare the adjusting entry to record the accrual of interest on December 31, 2015.
(d) Prepare the balance sheet presentation for the bond on 12/31/2015.
(e) Prepare the balance sheet presentation for the bond on 12/31/2016.












Problem 2
Black, Inc. management occasionally invests idle cash in stocks that are not intended to be held long term.
Management treats these investments as trading securities.

1/5/2015 Purchased 2,500 shares of Eversilver Corporation common stock, which constitutes less than 10% of the outstanding
shares of the company for $54.00 per share cash plus a total broker commission of $200.
6/15/2015 Received a cash dividend of $1.50 per share.
12/15/2015 Received a cash dividend of $1.60 per share.
12/31/2015 The market value of the stock is $60 per share as of year end, and a commission of $200 would apply to sell the shares.
1/22/2016 Sold 1,000 shares of Eversilver Corporation common stock for $62 per share minus $120 commission.


Instructions: Prepare Journal entries for the above transactions.

Problem 3
White Corporation acquired 50,000 shares of the outstanding common stock of Gold Company for $12.00 per share.
The following events occurred during the year.

6/15/2015 Gold declared and paid...