Need some help with these, -Thanks 1. On January 1, Sunland Company had 710000 s

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Need some help with these, -Thanks

1. On January 1, Sunland Company had 710000 shares of $10 par value common stock outstanding. On March 31 the company declared a 15% stock dividend. Market value of the stock was $20/share. As a result of this event,

a. Sunland Paid-in Capital in Excess of Par Value account increased $710000.

b. Sunland total stockholders’ equity was unaffected.

c. Sunland Stock Dividends account increased $1420000.

d. All of these answer choices are correct.

2. Sunland Company issued $3750000 of 6%, 10-year bonds on one of its interest dates for $3239000 to yield an effective annual rate of 8%. The effective-interest method of amortization is to be used. The journal entry to be recorded at the end of the second year for the payment of interest and the amortization of discount (rounded to the nearest dollar) will include a

a. credit to Discount on Bonds Payable for $36850.

b. credit to Discount on Bonds Payable for $34120.

c. debit to Bond Interest Expense for $225000.

d. credit to Cash for $261850.

3. Blossom Company issued $2000000 of 6%, 10-year bonds on one of its interest dates for $1727500 to yield an effective annual rate of 8%. The effective-interest method of amortization is to be used. What amount of discount (to the nearest dollar) should be amortized for the first interest period?

a. $36400

b.$56363

c. $18200

d. $27250

4. Tamarisk, Inc. purchased 4900 shares of its own previously issued $10 par common stock for $117600. As a result of this event,

a. Tamarisk’s Common Stock account decreased $49000.

b. Tamarisk’s total stockholders’ equity decreased $117600.

c. Tamarisk’s Paid-in Capital in Excess of Par Value account decreased $68600.

d. All of these answer choices are correct.

I would love to know the ancwers to these, and a brief explanation if you can, thanks do much.

a. Sunland Paid-in Capital in Excess of Par Value account increased $710000.

Explanation / Answer

1)15% stock dividend issued means no of shares issued=15%*710000=106500
It is option B since stockdividends will not chnage the equity value since the stock dividend given comes from retained earnings
2)It is option B since it is issued a discount bond
3)It is option C
Interestpayment=2000000*6%=120000
Interest expense=8%*1727500=138200
amortized=138200-120000=18200
4)It is option B since we are purchasing back shares the stockholder equity decrease by amount

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