Start Discovering Solved Questions and Your Course Assignments
TextBooks Included
Solved Assignments
Asked Questions
Answered Questions
Assume that on June 30, Aggie Corporation received interest on the Smith Corporation bonds, as well as a $1 dividend per share interest on the Bike Company.
Prepare the journal entries of Aggie Corporation to record the sale and adjustment of the unrealized gain or loss.
On January 1, Year 1, the Gatrong Corporation purchased 12%, five-year Fleming Corporation bonds with a face value of $200,000.
Prepare the journal entry on June 30 for Gatrong to record the first interest receipt, using the effective interest method.
On February 1, Year 2, the Razorback Corporation decides to transfer its available-for-sale securities to the trading category.
On September 30, Franz Corporation notices a decline in value of its investment in held-to-maturity bonds that it believes to be other than temporary.
On June 30 Gamecock Company issued a 50% stock dividend and Bulldog, Incorporated, received another 1,500 shares.
Prepare the journal entries of Commodore Company to record the annual payment and the change in surrender value.
Show how the bank reports the trading securities on its December 31, 2010 balance sheet.
Show what the bank reports on its fourth quarter 2010 income statement for these trading securities.
Record the purchase of the investments in 2010 and the adjusting entry on December 31, 2010, and show the respective December 31, 2010 balance sheet accounts.
Show how the preceding items are reported on the December 31, 2010 balance sheet of the Terry Company. Assume all investments are noncurrent.
If the company failed to separately record the interest at acquisition, explain the errors that would occur in the company's financial statements.
The bonds carry a 9% stated rate of interest, pay interest semiannually on June 30 and December 31, are due December 31, 2013 and are being held to maturity.
Dieland Company's incremental borrowing rate is 9%. The asset has a useful life of 7 years.
Formulate (and solve with AMPL) a linear programming problem that would help the manager maximize net revenue over the next month.
The Kurten Corporation is authorized to issue $500,000 of 8% bonds. Interest on the bonds is payable semiannually.
Prepare the journal entries to record the issuance of the bonds and the first two interest payments.
The Cotton Corporation issued $100,000 of 10% bonds dated January 1, 2010, for $97,158.54 on July 1, 2010.
The bonds were dated January 1, 2010, pay interest on each June 30 and December 31, are due December 31, 2014, and were issued to yield 12%.
The Taylor Company issued $100,000 of 13% bonds on January 1, 2010. The bonds pay interest semiannually on June 30 and December 31.
Prepare a bond interest expense and premium amortization schedule using the effective interest method.
Prepare the journal entries to record the retirement of $20,000 of the bonds on February 1, 2012.
Prepare a bond interest expense and discount amortization schedule showing interest expense for each year, using the effective interest method.
Prepare the journal entries to record the reacquisition (recall) of the Hill Corporation bonds.