New Semester Started Get 50% OFF Study Help! --h --m --s Claim Now

Question Answers

Textbooks

Find textbooks, questions and answers

Oops, something went wrong!

Change your search query and then try again

Result Not Found

Books FREE
Study Help
Tutors
AI Study Planner NEW
Sell Books

Search
Sign In
Register

study help
business
accounting

Financial Accounting Tools for business decision making 6th Edition Paul D. Kimmel, Jerry J. Weygandt, Donald E. Kieso - Solutions

Reiden Inc. issues $4 million, 5-year, 8% bonds at 102, with interest payable on January 1. The straight-line method is used to amortize bond premium.(a) Prepare the journal entry to record the sale of these bonds on January 1, 2012.(b) Prepare the journal entry to record interest expense and bond
Presented below is the partial bond discount amortization schedule for Syam Corp., which uses the effective-interest method of amortization. Instructions(a) Prepare the journal entry to record the payment of interest and the discount amortization at the end of period 1.(b) Explain why interest
Pickeril Inc. issues a $600,000, 10%, 10-year mortgage note on December 31, 2011, to obtain financing for a new building. The terms provide for semiannual installment payments of $48,145. Prepare the entry to record the mortgage loan on December 31, 2011, and the first installment payment.
You and several classmates are studying for the next accounting examination. They ask you to answer the following questions:1. If cash is borrowed on a $60,000, 9-month, 10% note on August 1, how much interest expense would be incurred by December 31?2. The cash register total including sales taxes
During the month of February, TriState Corporation’s employees earned wages of $74,000. Withholdings related to these wages were $4,200 for Social Security (FICA), $7,100 for federal income tax, and $1,900 for state income tax. Costs incurred for unemployment taxes were $110 for federal and $160
State whether each of the following statements is true or false._____1. Convertible bonds are also known as callable bonds._____2. The market rate is the rate investors demand for loaning funds._____3. Semiannual interest on bonds is equal to the face value times the stated rate times 6/12._____4.
Grenke Corporation issues $300,000 of bonds for $315,000. (a) Prepare the journal entry to record the issuance of the bonds, and (b) Show how the bonds would be reported on the balance sheet at the date of issuance.
Hanrahan Corporation issued $400,000 of 10-year bonds at a discount. Prior to maturity, when the carrying value of the bonds was $388,000, the company retired the bonds at 99. Prepare the entry to record the redemption of the bonds.
Megan Haak and Kathy Quandt borrowed $15,000 on a 7-month, 8% note from Golden State Bank to open their business, MK’s Coffee House. The money was borrowed on June 1, 2012, and the note matures January 1, 2013.Instructions(a) Prepare the entry to record the receipt of the funds from the loan.(b)
On May 15, Gruzik’s Outback Clothiers borrowed some money on a 4-month note to provide cash during the slow season of the year. The interest rate on the note was 8%. At the time the note was due, the amount of interest owed was $480.Instructions(a) Determine the amount borrowed by Gruzik.(b)
On June 1, Chetney Company Ltd. borrows $60,000 from First Bank on a 6-onth,$60,000, 8% note. The note matures on December 1.Instructions(a) Prepare the entry on June 1.(b) Prepare the adjusting entry on June 30.(c) Prepare the entry at maturity (December 1), assuming monthly adjusting entries have
In providing accounting services to small businesses, you encounter the following situations pertaining to cash sales.1. Duvall Company rings up sales and sales taxes separately on its cash register. OnApril 10, the register totals are sales $22,000 and sales taxes $1,100.2. Hubbard Company does
During the month of March, Lavonis Company’s employees earned wages of $64,000. Withholdings related to these wages were $4,896 for Social Security (FICA), $7,500 for federal income tax, $3,100 for state income tax, and $400 for union dues. The company incurred no cost related to these earnings
Season tickets for the Panthers are priced at $320 and include 16 games. Revenue is recognized after each game is played. When the season began, the amount credited to Unearned Ticket Revenue was $1,728,000. By the end of October, $1,188,000 of the Unearned Ticket Revenue had been recorded as
Sprague Company Ltd. publishes a monthly sports magazine, Fishing Preview. Subscriptions to the magazine cost $28 per year. During November 2012, Sprague sells 6,300 subscriptions for cash, beginning with the December issue. Sprague prepares financial statements quarterly and recognizes
On August 1, 2012, Laduke Corporation issued $600,000, 7%, 10-year bonds at face value. Interest is payable annually on August 1. Laduke’s year-end is December 31.InstructionsPrepare journal entries to record the following events.(a) The issuance of the bonds.(b) The accrual of interest on
On January 1, Krivitz Company issued $300,000, 8%, 10-year bonds at face value. Interest is payable annually on January 1.InstructionsPrepare journal entries to record the following events.(a) The issuance of the bonds.(b) The accrual of interest on December 31.(c) The payment of interest on
Assume that the following are independent situations recently reported in the Wall Street Journal.1. General Electric (GE) 7% bonds, maturing January 28, 2013, were issued at 111.12.2. Boeing 7% bonds, maturing September 24, 2027, were issued at 99.08.Instructions(a) Were GE and Boeing bonds issued
Olstad Company issued $350,000 of 8%, 20-year bonds on January 1, 2012, at face value. Interest is payable annually on January 1.InstructionsPrepare the journal entries to record the following events.(a) The issuance of the bonds.(b) The accrual of interest on December 31, 2012.(c) The payment of
The situations presented here are independent of each other.InstructionsFor each situation, prepare the appropriate journal entry for the redemption of the bonds.(a) Martha Corporation retired $140,000 face value, 9% bonds on April 30, 2012, at 101.The carrying value of the bonds at the redemption
Pedrick, Inc. reports the following liabilities (in thousands) on its January 31, 2012, balance sheet and notes to the financial statements. Instructions(a) Identify which of the above liabilities are likely current and which are likely longterm. Say if an item fits in neither category. Explain
McDonald??s 2009 financial statements contain the following selected data (in millions). Instructions(a) Compute the following values and provide a brief interpretation of each.(1) Working capital. (2) Current ratio. (3) Debt to total assets ratio.(4) Times interest earned ratio.(b) The notes to
3M Company reported the following financial data for 2009 and 2008 (in millions). Instructions(a) Calculate the current ratio for 3M for 2009 and 2008.(b) Suppose that at the end of 2009, 3M management used $300 million cash to pay off $300 million of accounts payable. How would its current ratio
Sportique Boutique reported the following financial data for 2012 and 2011. Instructions(a) Calculate the current ratio for Sportique Boutique for 2012 and 2011.(b) Suppose that at the end of 2012, Sportique Boutique used $1.5 million cash to pay off $1.5 million of accounts payable. How would its
A large retailer was sued nearly 5,000 times in a recent year—about once every two hours every day of the year. It has been sued for everything imaginable—ranging from falls on icy parking lots to injuries sustained in shoppers’ stampedes to a murder with a rifle purchased at one of its
Sanidas Company issued $500,000, 6%, 30-year bonds on January 1, 2012, at 103. Interest is payable annually on January 1. Sanidas uses straight-line amortization for bond premium or discount.InstructionsPrepare the journal entries to record the following events.(a) The issuance of the bonds.(b) The
Gatlin Company issued $300,000, 8%, 15-year bonds on December 31, 2011, for $288,000. Interest is payable annually on December 31. Gatlin uses the straight-line method to amortize bond premium or discount.InstructionsPrepare the journal entries to record the following events.(a) The issuance of the
Azen Corporation issued $400,000, 7%, 20-year bonds on January 1, 2012, for $360,727. This price resulted in an effective-interest rate of 8% on the bonds. Interest is payable annually on January 1. Azen uses the effective-interest method to amortize bond premium or discount.InstructionsPrepare the
Perez Company issued $380,000, 7%, 10-year bonds on January 1, 2012, for $407,968. This price resulted in an effective-interest rate of 6% on the bonds. Interest is payable annually on January 1. Perez uses the effective-interest method to amortize bond premium or discount.InstructionsPrepare the
Kitov Co. receives $280,000 when it issues a $280,000, 6%, mortgage note payable to finance the construction of a building at December 31, 2012. The terms provide for semiannual installment payments of $14,285 on June 30 and December 31.InstructionsPrepare the journal entries to record the mortgage
Berry Corporation issued a $50,000, 10%, 10-year installment note payable on January 1, 2012. Payments of $8,137 are made each January 1, beginning January 1, 2013.Instructions(a) What amounts should be reported under current liabilities related to the note on December 31, 2012?(b) What should be
On January 1, 2012, the ledger of Kindt Company contained these liability accounts.Accounts Payable .........$42,500Sales Taxes Payable .........6,600Unearned Service Revenue .....19,000During January, the following selected transactions occurred.Jan. 1 Borrowed $18,000 in cash from Premier Bank
Connor Corporation sells rock-climbing products and also operates an indoor climbing facility for climbing enthusiasts. During the last part of 2012, Connor had the following transactions related to notes payable.Sept. 1 Issued a $12,000 note to Patrick to purchase inventory. The 3-month note
The following section is taken from Paynter balance sheet at December 31, 2011. Current liabilities Interest payable ...............$ 40,000 Long-term liabilitiesBonds payable (8%, due January 1, 2015) ...500,000Interest is payable
On October 1, 2011, Huber Corp. issued $700,000, 5%, 10-year bonds at face value. The bonds were dated October 1, 2011, and pay interest annually on October 1. Financial statements are prepared annually on December 31.Instructions(a) Prepare the journal entry to record the issuance of the
Paprocki Company sold $6,000,000, 7%, 15-year bonds on January 1, 2012. The bonds were dated January 1, 2012, and pay interest on December 31. The bonds were sold at 98.Instructions(a) Prepare the journal entry to record the issuance of the bonds on January 1, 2012.(b) At December 31, 2012, $8,000
You have been presented with selected information taken from the financial statements of Southwest Airlines Co., shown on the next page. Instructions(a) Calculate each of the following ratios for 2008 and 2007.(1) Current ratio.(2) Free cash flow.(3) Debt to total assets.(4) Times interest earned
The following information is taken from Lima Corp.??s balance sheet at December 31, 2011. Interest is payable annually on January 1. The bonds are callable on any annual interest date. Lima uses straight-line amortization for any bond premium or discount. From December 31, 2011, the bonds will be
Wong Corporation sold $2,000,000, 7%, 5-year bonds on January 1, 2012. The bonds were dated January 1, 2012, and pay interest on January 1. Wong Corporation uses the straight-line method to amortize bond premium or discount.Instructions(a) Prepare all the necessary journal entries to record the
Trinh Co. sold $3,000,000, 8%, 10-year bonds on January 1, 2012. The bonds were dated January 1, 2012, and pay interest on January 1. The company uses straightline amortization on bond premiums and discounts. Financial statements are prepared annually.Instructions(a) Prepare the journal entries to
On January 1, 2012, Ross Corporation issued $1,800,000 face value, 5%, 10- year bonds at $1,667,518. This price resulted in an effective-interest rate of 6% on the bonds. Ross uses the effective-interest method to amortize bond premium or discount. The bonds pay annual interest January
On January 1, 2012, Lehn Company issued $2,000,000 face value, 7%, 10-year bonds at $2,147,202. This price resulted in a 6% effective-interest rate on the bonds. Lehn uses the effective-interest method to amortize bond premium or discount. The bonds pay annual interest on each January
Durango purchased a new piece of equipment to be used in its new facility. The $370,000 piece of equipment was purchased with a $50,000 down payment and with cash received through the issuance of a $320,000, 8%, 3-year mortgage note payable issued on October 1, 2012. The terms provide for quarterly
Beryl Forman has just approached a venture capitalist for financing for her new business venture, the development of a local ski hill. On July 1, 2011, Beryl was loaned $150,000 at an annual interest rate of 7%. The loan is repayable over 5 years in annual installments of $36,584, principal and
On January 1, 2012, the ledger of Fleming Company contained the following liability accounts.Accounts Payable ........$52,000Sales Taxes Payable ........8,200Unearned Service Revenue .....11,000During January, the following selected transactions occurred. Jan. 1 Borrowed $18,000 from TriCounty
Majestic Mountain Bikes markets mountain-bike tours to clients vacationing in various locations in the mountains of Colorado. In preparation for the upcoming summer biking season, Majestic entered into the following transactions related to notes payable.Mar. 1 Purchased Puma bikes for use as
The following section is taken from Lois Corp.’s balance sheet at December 31, 2011. Current liabilitiesInterest payable .............$ 84,000 Long-term liabilitiesBonds payable (7%, due January 1, 2016) .....1,200,000Interest is payable annually
On April 1, 2011, CMV Corp. issued $600,000, 8%, 5-year bonds at face value. The bonds were dated April 1, 2011, and pay interest annually on April 1. Financial statements are prepared annually on December 31.Instructions(a) Prepare the journal entry to record the issuance of the bonds.(b) Prepare
Crescent Electric sold $5,000,000, 9%, 10-year bonds on January 1, 2012. The bonds were dated January 1 and pay interest on January 1. The bonds were sold at 103.Instructions(a) Prepare the journal entry to record the issuance of the bonds on January 1, 2012.(b) At December 31, 2012, $15,000 of the
The following selected information was taken from the financial statements of Krispy Kreme Doughnuts, Inc. The Company leases equipment and facilities under both capital and operating leases. The approximate future minimum lease payments under non-cancelable (operating) leases as of January 31,
The following section is taken from Centralia Oil Company's balance sheet at December 31, 2011. Interest is payable annually on January 1. The bonds are callable on any annual interest date. Centralia uses straight-line amortization for any bond premium or discount. From December 31, 2011, the
Champeau Company sold $2,500,000, 8%, 25-year bonds on January 1, 2012. The bonds were dated January 1, 2012, and pay interest on January 1. Champeau Company uses the straight-line method to amortize bond premium or discount.Instructions(a) Prepare all the necessary journal entries to record the
Marini Corporation sold $2,600,000, 9%, 20-year bonds on December 31, 2011. The bonds were dated December 31, 2011, and pay interest on December 31. The company uses straight-line amortization for premiums and discounts. Financial statements are prepared annually.Instructions(a) Prepare the
On January 1, 2012, Pedraza Corporation issued $1,000,000 face value, 6%, 10-year bonds at $1,077,217. This price resulted in an effective-interest rate of 5% on the bonds. Pedraza uses the effective-interest method to amortize bond premium or discount. The bonds pay annual interest January
On January 1, 2012, Witzling Company issued $4,000,000 face value, 8%, 15-year bonds at $3,391,514. This price resulted in an effective-interest rate of 10% on the bonds. Witzling uses the effective-interest method to amortize bond premium or discount. The bonds pay annual interest January
Daisy Corporation purchased a new piece of equipment to be used in its new facility. The $450,000 piece of equipment was purchased with a $50,000 down payment and with cash received through the issuance of a $400,000, 6%, 5-year mortgage note payable issued on October 1, 2012. The terms provide for
Scott Robertson has just approached a venture capitalist for financing for his sailing school. The venture capitalist is willing to loan Scott $90,000 at a high-risk annual interest rate of 18%. The loan is payable over 2 years in monthly installments of $4,493. Each payment includes principal and
Markel Corporation's balance sheet at December 31, 2011, is presented below. During 2012, the following transactions occurred.1. Markel paid $2,500 interest on the bonds on January 1, 2012.2. Markel purchased $241,100 of inventory on account.3. Markel sold for $480,000 cash inventory which cost
Refer to the financial statements of Tootsie Roll Industries and the Notes to Consolidated Financial Statements in Appendix A.InstructionsAnswer the following questions.(a) What were Tootsie Roll’s total current liabilities at December 31, 2009? What was the increase/decrease in Tootsie
The financial statements of The Hershey Company are presented in Appendix B, following the financial statements for Tootsie Roll Industries in Appendix A.Instructions(a) Based on the information contained in these financial statements, compute the current ratio for 2009 for each company.What
The September 1, 2009, edition of CFO.com contains an article by Marie Leone and Tim Reason entitled “Dirty Secrets.” You can access this article at www.cfo.com/article.cfm/ 14292477?f=singlepage.InstructionsRead the article and answer the following questions.(a) Summarize the accounting for
Hechinger Co. and Home Depot are two home improvement retailers. Compared to Hechinger, founded in the early 1900s, Home Depot is a relative newcomer. But, in recent years, while Home Depot was reporting large increases in net income, Hechinger was reporting increasingly large net losses. Finally,
Purpose: Bond or debt securities pay a stated rate of interest. This rate of interest is dependent on the risk associated with the investment. Fitch Ratings provides ratings for companies that issue debt securities.InstructionsAnswer the following questions.(a) In what year did Fitch introduce its
On January 1, 2010, Gitzel Corporation issued $3,000,000 of 5-year, 8% bonds at 97. The bonds pay interest annually on January 1. By January 1, 2012, the market rate of interest for bonds of risk similar to those of Gitzel Corporation had risen. As a result, the market value of these bonds was
James Metallo, president of Zinda, Inc., is considering the issuance of bonds to finance an expansion of his business. He has asked you to do the following: (1) Discuss the advantages of bonds over common stock financing, (2) Indicate the types of bonds he might issue, and (3) Explain the issuing
The July 1998 issue of Inc. magazine includes an article by Jeffrey L. Seglin entitled “Would You Lie to Save Your Company?” It recounts the following true situation:“A Chief Executive Officer (CEO) of a $20-million company that repairs aircraft engines received notice from a number of its
During the summer of 2002, the financial press reported that Citigroup was being investigated for allegations that it had arranged transactions for Enron so as to intentionally misrepresent the nature of the transactions and consequently achieve favorable balance sheet treatment. Essentially, the
For most U.S. families, medical costs are substantial and rising. But will medical costs be your most substantial expense over your lifetime? Not likely. Will it be housing or food? Again, not likely. The answer: Taxes are likely to be your biggest expense. On average, Americans work 74 days to
If your school has a subscription to the FASB Codification, go to aaahq.org/ asclogin.cfm to log in and prepare responses to the following.(a) What is the definition of current liabilities?(b) What is the long-term obligation?(c) What guidance does the Codification provide for the disclosure of
Explain how IFRS defines a contingent liability and give an example.
Briefly describe some of the similarities and differences between GAAP and IFRS with respect to the accounting for liabilities.
Ratzlaff Company issues C = 2 million, 10-year, 8% bonds at 97, with interest payable on July 1 and January 1.Instructions(a) Prepare the journal entry to record the sale of these bonds on January 1, 2012.(b) Assuming instead that the above bonds sold for 104, prepare the journal entry to record
Many multinational companies find it beneficial to have their shares listed on stock exchanges in foreign countries. In order to do this, they must comply with the securities laws of those countries. Some of these laws relate to the form of financial disclosure the company must provide, including
The financial statements of Zetar plc are presented in Appendix C. The company’s complete annual report, including the notes to its financial statements, is available at www.zetarplc.com.InstructionsUse the company’s annual report to answer the following questions.(a) According to the notes
Max, a student, asks your help in understanding some characteristics of a corporation. Explain each of these to Max.(a) Separate legal existence.(b) Limited liability of stockholders.(c) Transferable ownership rights.
(a) Your friend B. T. Barnum cannot understand how the characteristic of corporate management is both an advantage and a disadvantage.Clarify this problem for B. T.(b) Identify and explain two other disadvantages of a corporation.
Cindy Krug believes a corporation must be incorporated in the state in which its headquarters office is located. Is Cindy correct? Explain.
What are the basic ownership rights of common stockholders in the absence of restrictive provisions? Discuss.
A corporation has been defined as an entity separate and distinct from its owners. In what ways is a corporation a separate legal entity?
The corporate charter of Elmer Corporation allows the issuance of a maximum of 100,000 shares of common stock. During its first 2 years of operation, Elmer sold 70,000 shares to shareholders and reacquired 4,000 of these shares. After these transactions, how many shares are authorized, issued, and
Which is the better investment—common stock with a par value of $5 per share or common stock with a par value of $20 per share?
For what reasons might a company like IBM repurchase some of its stock (treasury stock)? Discuss.
Rosa, Inc. purchases 1,000 shares of its own previously issued $5 par common stock for $11,000. Assuming the shares are held in the treasury, what effect does this transaction have on (a) Net income, (b) Total assets, (c) Total paid-in capital, and (d) Total stockholders’ equity?
(a) What are the principal differences between common stock and preferred stock?(b) Preferred stock may be cumulative. Discuss this feature.(c) How are dividends in arrears presented in the financial statements?
Identify the events that result in credits and debits to retained earnings.
Indicate how each of these accounts should be classified in the stockholders’ equity section of the balance sheet.(a) Common Stock.(b) Paid-in Capital in Excess of Par Value.(c) Retained Earnings.(d) Treasury Stock.(e) Paid-in Capital in Excess of Stated Value.(f) Preferred Stock.
Three dates associated with Leon Company’s cash dividend are May 1, May 15, and May 31. Discuss the significance of each date and give the entry at each date.
Contrast the effects of a cash dividend and a stock dividend on a corporation’s balance sheet.
Celia Ahern asks, “Since stock dividends don’t change anything, why declare them?” What is your answer to Celia?
Burke Corporation has 10,000 shares of $15 par value common stock outstanding when it announces a 3- for-1 split. Before the split, the stock had a market price of $120 per share. After the split, how many shares of stock will be outstanding, and what will be the approximate market price per share?
The board of directors is considering a stock split or a stock dividend. They understand that total stockholders’ equity will remain the same under either action. However, they are not sure of the different effects of the two actions on other aspects of stockholders’ equity. Explain the
(a) What is the purpose of a retained earnings restriction? (b) Identify the possible causes of retained earnings restrictions.
Fredo Inc.’s common stock has a par value of $1 and a current market value of $15. Explain why these amounts are different.
What is the formula for the payout ratio? What does it indicate?
Haidet Corp. has a return on assets ratio of 12%. It plans to issue bonds at 8% and use the cash to repurchase stock. What effect will this have on its debt to total assets ratio and on its return on common stockholders’ equity?
Bonnie Decker is planning to start a business. Identify for Bonnie the advantages and disadvantages of the corporate form of business organization.
On May 10, Tharp Corporation issues 2,500 shares of $5 par value common stock for cash at $13 per share. Journalize the issuance of the stock.
On June 1, Rodero Inc. issues 3,000 shares of no-par common stock at a cash price of $7 per share. Journalize the issuance of the shares. BE11-4 Merritt Inc. issues 8,000 shares of $100 par value preferred stock for cash at $106 per share. Journalize the issuance of the preferred stock.
Merritt Inc. issues 8,000 shares of $100 par value preferred stock for cash at $106 per share. Journalize the issuance of the preferred stock.
Wildwood Corporation has 7,000 shares of common stock outstanding. It declares a $1 per share cash dividend on November 1 to stockholders of record on December 1. The dividend is paid on December 31. Prepare the entries on the appropriate dates to record the declaration and payment of the cash

Showing 4100 - 4200 of 107766

First
35
36
37
38
39
40
41
42
43
44
45
46
47
48
49
Last

Step by Step Answers

Services

Sitemap
Fun
Definitions
Become Tutor
Used Textbooks
Study Help Categories
Recent Questions
Expert Questions
Campus Wear
Sell Your Books

Company Info

Security
Copyrights
Privacy Policy
Terms & Conditions
SolutionInn Fee
Scholarship
Online Quiz
Give Feedback, Get Rewards

Get In Touch

About Us
Contact Us
Career
Jobs
FAQ
Student Discount
Campus Ambassador

Secure Payment

Download Our App

© 2026 SolutionInn. All Rights Reserved