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A corporation has the following stockholders' equity accounts at the end of the current fiscal year, after all closing entries have been posted: Common Stock, $10 par, $2,000,000; Paid-In Capital in 8. cess of Par Common Stock, $375,000; Paid-In Capital from Treasury Stock, $18,000; Retained Earnings, $1.285,000. The earnings for the current year, during which there were no un were $350,000. (a) (b) Compute the earnings per share of common stock. Assuming that the market price of the common stock at the end of the current fiscal year was $63, compute the price-earnings ratio. 9. Based on the following information for Company A and Company B: Company Company Market price per share Earnings per share Dividends per share Investor's cost per share $60.00 10.00 3.00 40.00 $80.00 4.00 10 50.00 (a) Calculate the price-earnings ratio for each company (b) Assume that Company A and B are in the same industry. Which one is expected to have the greater growth and the more improved earnings? Why? Prepare the journal entry to issue $300,000 bonds which sold for $294,000. Prepare the journal entry to issue $300,000 bonds which sold for $303,000. 10. (a) (b) On the first day of the current fiscal year, $3,000,000 of 10-year, 9% bonds, with interest payable annually, were sold for $3,100,000. Present entries to record the following transactions for the current fiscal year: (a) Issuance of the bonds. (b) First annual interest payment. (o) Amortization of bond premium for year, using the straight-line method of 11. amortization. 12. On January 1, 2016, Belden, Inc. issued long-term notes payable for $50,000. The note will be paid over 10 years with payments of S5,000 plus 12% interest due each January 1, beginning January 1, 2017. The amortization schedule for the first three payments is provided. Prepare the journal entry for the issuance of the note and for the January 1,2018 note payment. Beginning Principal Interest Total Ending Balance Payment Expense Payment Balance $50,000 01/01/2017| $50,000 ss,000 $6,000 $11,00 45,000 1/01/201845,000 5,0005,400 10,400 40,000 01/01/201940,000 5,000 ,800 9,800 35,000 101,201 0,00 $.00 56008 51,005 $5.00

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