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Strada Controls Inc. has 100,000 common shares outstanding on January 1, 2016. On May 25, 2016, the board of directors declared a semi-annual cash dividend .
Dividends were not paid last year. The corporation also has 5,000 common shares outstanding.
Does the amount of the arrears appear as a liability on the December 31, 2016 balance sheet? Explain your answer.
Blitz Power Tongs Inc. received a charter that authorized it to issue an unlimited number of common shares.
Record the construction of the building when completed on June 30, 2017 for a cost of $90,000, paid in cash.
As representatives of common shareholders, which financing method most likely meets the board of directors' needs?
Prepare the shareholders' equity section of the balance sheet at December 31, 2016 and the related note to the financial statements.
On December 31, 2016 the Tridon Construction common shares traded at $24. Why is the market value different from the book value of commons shares?
What amount of cash dividends would be distributed to common shareholders on December 31, 2017?
Prepare a schedule to compare the effect on earnings per common share of each of the financing options.
Received a corporate charter authorizing the issue of an unlimited number of voting common shares.
Prepare journal entries to record the 2017 transactions and closing entries. Descriptions are not necessary.
Copper Corp. obtained a $500,000 loan from Last Chance Bank on January 1, 2016. It purchased a piece of heavy equipment for $450,000 on January 2, 2016.
Prepare the partial balance sheet of North Corp. at December 31, 2018 showing the finance lease balance assuming the December 31 lease payment has been made.
Why would investors pay a premium for a corporate bond? Why would a corporation issue its bonds at a discount?
Calculate the amount of interest paid in cash during 2015 and the amount of interest expense that will appear in the 2015 income statement.
Prepare a partial balance sheet at December 31, 2017 showing how the bonds payable and the premium on bonds should be shown on the balance sheet.
How much annual interest must the corporation pay? On what amount does the corporation pay?
Does the diagram illustrate the straight-line or effective interest method of bond premium and discount amortization? How can you tell?
Prepare a partial balance sheet showing the bond liability and discount on December 31, 2015 and 2016 assuming the bonds will be redeemed on December 31, 2017.
Zenith Manufacturing Company Limited received authorization to issue $8,000,000 3-year, 12-per cent bonds.
Calculate the amount of interest expense shown in the income statement at December 31, 2015. Is this amount the same as cash interest paid by Esther?
The 9% bonds were authorized on July 1, 2015. Interest is paid semiannually on June 30 and December 31.
The bonds are issued at 106 on April 1, 2015. Prepare the journal entries to record the sale of the bonds on April 1, 2015.
On January 1, 2015, Pete's Planes Inc. was authorized to issue 5-year, $500,000, 12% bonds. Interest was payable on June 30 and December 31.