Chapter 15 Homework Problems1. On January 1, 2009, The Clark Corporation issued $800,000 of 12-year bonds with a face rate of 10%.Interest is paid SEMIANNUALLY. The market rate of interest on January 1, 2009 was 8%. What was the PROCEEDS from the bond issue? $921,9602. How would your answer change if the market rate on the issue date of the above bond had been 11% instead of 8%? Proceeds would fall below $800,000.3. Murray Glass Company beginning of year retained earnings balance was $113,200. The corporation declared and paid $77,600 during the year and ended the year with a $146,000 balance. What was Murray Glass Company’s net income or loss for the year? $110,4004. What is the journal entry when dividends are PAID?Organics Superstore Inc. issued $500,000 of bonds on July 1 2008. The bonds pay interest SEMIANNUALLY. A partial amortization schedule follows. Amounts have been left blank on purpose.DateCashPaymentInterestExpenseChangein DiscDisc. onBondsBondFaceAmountCarryingValue$16,490 $500,000 $483,510Month 6 $20,000 $21,758Month12$20,000 $1,837Month18$20,000 1,920Month24$20,000 x5. What is the face rate of interest on the bonds? 8%6. When these bonds were issued, was the market rate the same as the face rate, greater than the face rate, or less than the face rate? Explain.7. What is the interest expense for the fourth payment (month 24)? I am looking for the amount that goeswhere the “X” is shown? $22,0068. Rollie Company incorporated in 2011 and had the following transactions during 2011:Issued 18,000 shares $40 par value preferred stock for $40.Issued 130,000 shares common stock, par value $1.00 for $12.00 per share.Reported Net loss of ($230,000).Purchased $20,000 worth of treasury stock.Declared (but didn’t pay) a dividend of $40,000.What is their total equity at the end of 2011? $1,990,0009. The Ohio Corporation has 900,000 shares of $1 par value common stock authorized and 550,000 shares issued and outstanding. The market value of the stock is $18 per share. What is the journal entry to record the declaration of a 10% stock dividend? 10. The Everything is Pink Co. issued $50,000,000 of 10-year, 10 percent bonds with semi-annual cash interest payments. The market interest rate at the time of issuance was 8 percent. What was the issuing price of this bond? $56,795,75011. What journal entry will the Everything is Pink Co make in its records when issuing the bonds above for cash?12. What is the journal entry to record the issuance of 10,000 shares of $10 par value common stock for $25 a share (for cash)?13. On January 1, 2011 The Topsy Turvy Amusement Park, Inc. had 750,000 shares of no-par common stock outstanding for $1,000,000 and retained earnings of $300,000. Net income for the year ended December 31, 2011, was $200,000 and dividends declared for the year amounted to $120,000. What was total stockholders’ equity on December 31, 2011?