Reporting financial statement effects of bond transactions

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Reference no: EM132032641

1. Analyzing and Reporting Financial Statement Effects of Bond Transactions On January 1, 2017, Sparta Company issued $550,000 of 5-year, 12% bonds, yielding a market (yield) rate of 10%. Interest is payable semiannually on June 30 and December 31

Confirm the bond issue price.

Indicate the financial statement effect for:

Bond issuance,

Semiannual interest payments

2. Which one of the following is a direct result of a 2-for-1 stock split?

A. A 100 percent increase in the common stock account balance (common stock line).

B. A 100 percent increase in the number of shareholders.

C. A 50 percent decrease in the par value per share.

D. A 50 percent increase in the number of shares outstanding.

Reference no: EM132032641

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