Villarente Company and Allen Corporation
Downside 1. Villarente Firm issued 5-year $200,000 face worth bonds at 95 on January 1,2012. The said rate of interest on these bonds is 9%, and the efficient rate of interest is 10.33%. Usethe efficient rate of interest technique to finish the amortization schedule under.CashPaymentJanuary 1, 2012December 31, 2012December 31, 2013December 31, 2014December 31, 2015December 31, 2016TotalsInterestExpenseDiscountAmortizationCarryingValueProblem 2. Allen Company was organized on July 15, 2012. It was licensed to concern150,000 shares of $25 par worth frequent inventory and 50,000 shares of 6% cumulative preferredstock. The popular inventory had a said worth of $50 per share. The next inventory transactionsrelate to Allen Company.Issued 55,000 shares of frequent inventory for $33 per share.Issued 2,750 shares of the category A most well-liked inventory for $62 per share.Issued 27,500 shares of frequent inventory for $35 per share.Required:1) Point out the impact of every of those transactions on Allen's monetary statements. Embrace dollaramounts within the mannequin, under. After recording the three transactions, calculate column totals.2) After these transactions have been recorded, what's the complete quantity of stockholders' fairness?three) After these transactions have been recorded, what number of shares of frequent inventory areoutstanding?AssetsCash=EquityCommon + Paid-in Capital + PreferredStockin Extra ofStockPar ValueCash Stream+ Paid-inCapital inExcess ofStated Worth