Reference no: EM132988908

Question -

-On January 1, 2020, Baltimore Company issued $200,000 face value, 5%, 10-year bonds at 102. Interest is paid annually on January 1. Baltimore uses the straight-line method for amortization. Use this information to determine the dollar value of the interest expense for the 2020 calendar year.

-On January 2, 2020, All Good Company purchased 7,000 shares of the stock of Big Bad Company, and DID obtain significant influence. The investment is intended as a long-term investment. The stock was purchased for $14.00 per share, and represents a 30% ownership stake. Big Bad Company made $450,000 of net income in 2020, and paid dividends to All Good Company of $25,000 on December 15, 2020. Big Bad Company's stock was trading on the open market for $15.50 per share at the end of the year. Use this information to determine the book value of the investment that should be reported at year end by All Good Company.

-At fiscal year end, December 31, 2018, Somerset Corporation had total stockholders' equity of $5,000,000. On FY 2018 year end, Somerset Corporation had Common Stock account of $1,850,000 of $10 par value common stock and Preferred Stock account of $100,000 of $100 par value stock. There was no treasury stock. The preferred stock was noncumulative and non-callable. Use this information to determine the book value per share of Common Stock as of end of the FY 2018?

-On January 1, 2021, Baltimore Company issued $400,000 face value, 5%, 5-year bonds at 103. Baltimore uses the straight-line method for amortization. Use this information to determine the dollar value of the annual bond premium amortization.

-Allstar Company signed a $300,000 mortgage on July 1, 2021 for the purchase of their new garage building. The mortgage entailed equal monthly payments of $2,800 at the end of each month. The interest rate is 6% per year. How much interest expense will be paid on August 31, 2021? Do not use actual days; assume a 360 day year and 30 day months.