BondsIntel Inc. is the pioneer in the manufacture of microprocessors for
computers. The company’s fiscal year runs from April 1 to March 31. On
4/1/2015, Intel Issued $5,000,000 of 11% Bonds due in 10 years. The
interest is payable annually on April 1. The market rate of interest on
that date for bonds of similar risk is 10%.Prepare the journal entry for the issuance of the bonds and on the first interest payment date.Use the Excel Template linked at the bottom of this page to prepare
an amortization schedule for the bonds. Any written comments should be
included in Excel’s comments function and formatted according to APA writing requirments StocksPresented below is the stockholders’ equity section of AMR
Corporation. All amounts are in millions except for number of shares and
par value.
Stockholders’ Equity (Deficit)
Current Year
Prior Year
Preferred stock – 20,000,000 shares authorized; none issued
$ -0-
$ -0-
Common stock – $1 par value; 750,000,000 shares authorized; 182,350,259 shares issued
182
182
Additional paid-in capital
2,521
2,605
Treasury shares at cost: current year-21,194,312; prior year-22,768,027
(1,308)
(1,405)
Accumulated other comprehensive loss
(664)
(785)
Accumulated deficit
(1,312)
(551)
$ (581)
$ 46
Explain why the common stock is classified as part of the stockholders’ equity.Explain why treasury stock is not classified as an asset.Explain what is meant by “Accumulated other comprehensive loss.”Why is the accumulated deficit larger in the current year than in the prior year?Compute book value per share for AMR for the current year.
copy_of_act360_ct_1_exceltemplate.xlsx
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Prepare the journal entries to record the following.
Date
Account Title
Account Title
Amount
Amount
Provide a one line explanation for the reason why the journal entry has been made.
Date
Account Title
Account Title
Amount
Amount
Provide a one line explanation for the reason why the journal entry has been made.
Date
4/1/2014
4/1/2015
4/1/2016
4/1/2017
4/1/2018
4/1/2019
4/1/2020
4/1/2021
4/1/2022
4/1/2023
Cash Paid
Interest expense
Premium Amortization
Carrying Amount of Bonds
…
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