Question

Use the following to ansswer question 4: Presented below is information related to Hale Corporation: Common Stock, $1 par Paid-in Capital in Excess of Par-Common Stock Preferred 8 1/2% Stock, S50 par Paid-in Capital in Excess of Par-Preferred Stock Retained Earnings Treasury Common Stock (at cost) $3,500,000 550,000 2,000,000 400,000 1,500,000 150,000 4. The total stockholders' equity of Hale Corporation is A) $7,800,000. B) $7,950,000. C) $6,300,00o. D) $6,450,000. 5. Kant Corporation retires its $500,000 face value bonds at 102 on January 1, following the payment of interest. The carrying value of the bonds at the redemption date is $481,250. The entry to record the redemption will include a A) credit of $18,750 to Loss on Bond Redemption. B) credit of $18,750 to Discount on Bonds Payable C) debit of $28,750 to Gain on Bond Redemption. D) debit of $10,000 to Premium on Bonds Payable.

Answer 1

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