Exercise 15-4Fogelberg Corporation is a regional company which is an SEC registrant. The corporationâs securities are thinly traded on NASDAQ (National Association of Securities Dealers Quotes). Fogelberg has issued 11,300 units. Each unit consists of a $565 par, 12% subordinated debenture and 11 shares of $6 par common stock. The investment banker has retained 452 units as the underwriting fee. The other 10,848 units were sold to outside investors for cash at $961 per unit. Prior to this sale the 2-week ask price of common stock was $45 per share. Twelve percent is a reasonable market yield for the debentures, and therefore the par value of the bonds is equal to the fair value.Prepare the journal entry to record Fogelbergâs transaction, under the following conditions. (Round answers to 0 decimal places, e.g. $38,487. If no entry is required, select “No Entry” for the account titles and enter 0 for the amounts. Credit account titles are automatically indented when amount is entered. Do not indent manually.)(1) Employing the incremental method.(2) Employing the proportional method, assuming the recent price quote on the common stock reflects fair value.No.Account Titles and ExplanationDebitCredit1. 2.
Delivering a high-quality product at a reasonable price is not enough anymore.
That’s why we have developed 5 beneficial guarantees that will make your experience with our service enjoyable, easy, and safe.
You have to be 100% sure of the quality of your product to give a money-back guarantee. This describes us perfectly. Make sure that this guarantee is totally transparent.Read more
Each paper is composed from scratch, according to your instructions. It is then checked by our plagiarism-detection software. There is no gap where plagiarism could squeeze in.Read more
Thanks to our free revisions, there is no way for you to be unsatisfied. We will work on your paper until you are completely happy with the result.Read more
Your email is safe, as we store it according to international data protection rules. Your bank details are secure, as we use only reliable payment systems.Read more
By sending us your money, you buy the service we provide. Check out our terms and conditions if you prefer business talks to be laid out in official language.Read more