Accounting

1. Why is the par value rather than the market value recorded in a stock account?

2. How do journal entries reflect the market value of par value stock when the stock is first issued?

Don't use plagiarized sources. Get Your Custom Essay on
Accounting
Just from $13/Page
Order Essay

3. What distinguishes par value from no-par stock in the shareholders’ equity section of the balance sheet?

Ransopher Corporation needs to buy a new computer system. Dwell Computers has agreed to sell Ransopher a computer system and accept a 10-year, noninterest-bearing note payable. The market rate of interest is currently 7 percent compounded annually and the value of the computer system is $53,000.

Required:

A. What is the face value of the noninterest-bearing note?

B. Prepare a spreadsheet that indicates the interest cost associated with the loan each year and the carrying value of the loan at the end of each year.

Place Order
Grab A 14% Discount on This Paper
Pages (550 words)
Approximate price: -
Paper format
  • 275 words per page
  • 12 pt Arial/Times New Roman
  • Double line spacing
  • Any citation style (APA, MLA, Chicago/Turabian, Harvard)

Try it now!

Grab A 14% Discount on This Paper

Total price:
$0.00

How it works?

Follow these simple steps to get your paper done

Place your order

Fill in the order form and provide all details of your assignment.

Proceed with the payment

Choose the payment system that suits you most.

Receive the final file

Once your paper is ready, we will email it to you.