7. A company issued 6-year, 8% bonds with a par value of $550,000. The market rate when the bonds were issued was 7.5%. The company received $555,500 cash for the bonds. Using the straight-line method, the amount of recorded interest expense for the first semiannual interest period is:

8. A corporation issued 8% bonds with a par value of $1,010,000, receiving a $22,000 premium. On the interest date 5 years later, after the bond interest was paid and after 40% of the premium had been amortized, the corporation purchased the entire issue on the open market at 99 and retired it. The gain or loss on this retirement is:

20.Prior to May 1, Fortune Company has never had any treasury stock transactions. A company repurchased 220 shares of its common stock on May 1 for $11,000. On July 1, it reissued 110 of these shares at $52 per share. On August 1, it reissued the remaining treasury shares at $49 per share. What is the balance in the Paid-in Capital, Treasury Stock account on August 2?

21.A company had net cash flows from operations of $142,000, cash flows from financing of $374,000, total cash flows of $566,000, and average total assets of $3,820,000. The cash flow on total assets ratio equals

23. A company's income statement showed the following: net income, $139,000 and depreciation expense, $34,500. An examination of the company's current assets and current liabilities showed the following changes as a result of operating activities: accounts receivable decreased $10,900; merchandise inventory increased $21,000; and accounts payable increased $4,900. Calculate the net cash provided or used by operating activities.

Answer rating: 100% (QA)

7 To calculate the amount of recorded interest expense for the first semiannual interest period using the straightline method we need to determine the annual interest payment and divide it by two Par ... View the full answer