13.Following is the first three years of an amortization table for an issue of ten-year bonds:
YearBeginning
PrincipalInterest
PaidInterest
ExpenseDecrease
in PrincipalEnding
Principal
1$66,886$5,000$4,682$318$66,568
266,5685,0004,66034066,228
366,2285,0004,63636465,864
Required:
a.Were these bonds sold at face value, above, or below?
b.What was the market rate at which these bonds were sold?
14.Matterhorn Company’s charter allows it to sell 250,000 shares of $2 par value common stock. To date, the firm has sold 100,000 shares for a total of $600,000. Matterhorn has reacquired 4,000 shares from shareholders at a price of $8 per share. Retained earnings equals $250,000.
a.What total amount of contributed capital should Mattherhorn report?
b.What amount should be reported for the Common Stock account?
c.What was the average selling price of each share of common stock?
d.How many shares of stock are outstanding?
e.What amount should be reported for stockholders' equity?