Long-Term Liabilities and Stockholders’ Equity
Intel Inc. is the pioneer in the manufacture of microprocessor for computers. The company’s fiscal year runs from April1 to March 31. On 1/1/2013, Intel Issued $5,000,000 of 11% Bonds due in 5 years. The interest is payable annually on April 1. The market rate of interest on that date for bonds of similar risk is 10%
Save your time - order a paper!
Get your paper written from scratch within the tight deadline. Our service is a reliable solution to all your troubles. Place an order on any task and we will take care of it. You won’t have to worry about the quality and deadlinesOrder Paper Now
1. 1. 1. Prepare the journal entry for the issuance of the bonds and on the first interest payment date.
2. 2. 2. Use the attached spreadsheet to prepare an amortization schedule for the bonds.
Presented below is the stockholders equity section of Delta Inc.
All amounts are in million except for number of shares and par value
Current Year Prior Year
Preferred Stock – 20,000,000 shares authorized, $0 $0
Common Stock – $1 par value, 750,000,000 shares 182 182
authorized, 182,350,259 issued
Additional Paid-in-capital 2,521 2,605
Treasury stock at cost: current year – 21,194,312; prior
Year 22,768, 027 (1,308) (1,405)
Accumulated other comprehensive loss (664) (785)
Accumulated other deficit (1,312) (551)
1. 1. 1. Explain why the common stock is classified as part of the stockholder’s equity.
2. 2. 2. Explain why treasury stock is not classified as an asset.
3. 3. 3. Explain what is meant by “Accumulated other comprehensive loss.”
4. 4. 4. Why is the accumulated deficit larger in the current year than in the prior year?
5. 5. 5. Compute book value per share for Delta for the current year.
Business & Finance homework help