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
S
Books
FREE
Study Help
Expert Questions
Accounting
General Management
Mathematics
Finance
Organizational Behaviour
Law
Physics
Operating System
Management Leadership
Sociology
Programming
Marketing
Database
Computer Network
Economics
Textbooks Solutions
Accounting
Managerial Accounting
Management Leadership
Cost Accounting
Statistics
Business Law
Corporate Finance
Finance
Economics
Auditing
Tutors
Online Tutors
Find a Tutor
Hire a Tutor
Become a Tutor
AI Tutor
AI Study Planner
NEW
Sell Books
Search
Search
Sign In
Register
study help
business
intermediate accounting reporting
Intermediate Accounting Reporting and Analysis 3rd edition James M. Wahlen, Jefferson P. Jones, Donald Pagach - Solutions
On January 2, 2019, Dekker Company grants each of its 15 new employees 200 restricted share units. Each of the time-vested restricted share units entitles the employee to receive one share of Dekker common stock if they remain an employee of the company for 2 years. On January 2, 2019, shares of
On January 1, 2019, Rhine Company adopts a performance-based share option plan for its 80 key executives. Each executive is granted a maximum of 70 share options, but the number of options that vest depends on the percentage increase in Rhine’s sales over a 3-year service period. If by December
On January 1, 2019, Pepin Company adopts a compensatory share option plan for its 50 executives. The plan allows each executive to purchase 200 shares of its $2 par common stock for $30 per share after completing a 3-year service period. Pepin estimates the value of each option to be $14 on the
Nadal Company has 20 executives to whom it grants compensatory share options on January 1, 2019. At that time, it grants each executive the right to purchase 100 shares of its $5 par common stock at $40 per share after a 3-year service period. The value of each option is estimated to be $10.25 on
On February 3, 2019, Teel Corporation enters into a subscription contract with several subscribers for 5,000 shares of $10 par common stock at a price of $16 per share. The contract requires a down payment of 25%, with the remaining balance to be paid on May 3, 2019. The stock will be issued to
Maxville Company issues 300 shares of $50 par preferred stock and 1,000 shares of $10 par common stock in a “package” sale. Total proceeds received amount to $39,000.Required:Record the transaction for each independent assumption shown:1. The common stock has a current market value of $19 per
Caswell Corporation is authorized to issue 10,000 shares of common stock. It sells 6,000 shares at $19 per share.Required:Record the sale of the common stock, given the following independent assumptions:1. The stock has a par value of $10 per share.2. The stock is no-par stock, but the board of
On January 1, 2019, Salt Lake Corporation grants share appreciation rights to its CEO. Under the plan, the CEO will receive cash for the difference between the quoted market price over a $50 option price for 1,000 shares of the company’s common stock on the exercise date. The service period is 3
On January 2, 2019, Brust Corporation grants its new CFO 2,000 restricted share units. Each of the time-vested restricted share units entitles the CFO to receive one share of Brust common stock if she remains an employee of the company for 4 years. On January 2, 2019, shares of Brust’s $1 par
On January 1, 2019, Phoenix Corporation adopts a performance-based share option plan for 25 executives, with the number of shares based on the yearly increase in sales. At the end of 2019, based on a 10% increase in sales, it expects that each executive will be granted 150 options and that the fair
Given the following information from Fire Corporation’s fixed share option compensation plan, prepare the journal entry to record its current compensation expense for 2020. 2019 2020 Estimated compensation expense to date $54,357 $89,990
On January 1, 2019, Stoner Corporation granted compensatory share options to key employees for the purchase of shares of the company’s common stock at $25 per share. The options are intended to compensate employees for the next 2 years. The options are exercisable within a 4-year period
Amlin Corporation was incorporated on January 1, 2019, with the following authorized capitalization:• 20,000 shares of common stock, no-par value, stated value $40 per share• 5,000 shares of 5% cumulative preferred stock, par value $10 per shareDuring 2019, Amlin issued 12,000 shares of common
During 2019, Bradley Corporation issued for $110 per share, 5,000 shares of $100 par value convertible preferred stock. One share of preferred stock can be converted into 3 shares of Bradley’s $25 par value common stock at the option of the preferred shareholder. On December 31, 2020, all of
Polk Corporation was organized on January 2, 2019, with authorized capital of 100,000 shares of $10 par value common stock. During 2019, Polk had the following transactions:Jan. 12 Issued 20,000 shares at $12 per shareApr. 23 Issued 1,000 shares for legal services when the market price was $14 per
Cary Corporation has 50,000 shares of $10 par common stock authorized. The following transactions took place during 2019, the first year of the corporation’s existence:• Sold 5,000 shares of common stock for $18 per share.• Issued 5,000 shares of common stock in exchange for a patent
What is the difference between a fixed compensation plan and a performance-based compensation plan?
Clare Company is constructing a new warehouse facility. On May 15, 2019, the company issued $2,500,000 of short-term notes payable due March 15, 2020, to finance construction of the warehouse. On December 31, 2019, Clare intends to refinance the shortterm notes payable by issuing long-term debt.
Restructuring (Debtor) Oakwood Corporation is delinquent on a $2,400,000, 10% note to Second National Bank that was due January 1, 2019. At that time, Oakwood owed the principal amount plus $34,031.82 of accrued interest. Oakwood enters into a debt restructuring agreement with the bank on January
An examination of the accounting records of Durham Corporation on January 1, 2019 (after reversing entries had been made for all accrued interest at the end of 2018) disclosed the following information regarding the company’s long-term debt: 12.5% bonds, dated January 1, 2015, paying
Hamlet Corporation purchases computer equipment at a price of $100,000 on January 1, 2019, paying $40,000 down and agreeing to pay the balance in three $20,000 annual installments beginning December 31, 2019. It is not possible to value either the equipment or the $60,000 note directly; however,
Lubbock Corporation acquires machinery from South Company in exchange for a $20,000 non-interest-bearing, 5-year note on June 30, 2019. The note is due on June 30, 2024. The machinery has a fair value of $11,348.54, is subject to straight-line depreciation, and has an estimated life of 10 years (no
On January 1, 2019, Berlin Corporation issued $500,000 of 11.5% bonds due December 31, 2025, at 102. The bonds pay interest semiannually on June 30 and December 31. Each $1,000 bond carried 20 warrants, and the exchange of two warrants allowed the holder to acquire one share of $10 par common stock
Wedge Corporation issued $1,500,000 of 10% convertible bonds for $1,620,000 on March 1, 2019. The bonds are dated March 1, 2019, pay interest semiannually on August 31 and February 28, and the premium is amortized using the straight-line method. The bonds are due on February 28, 2029, and each
Baxter Corporation issued $400,000 of 11% bonds for $385,279.91 on January 1, 2019. The bonds pay interest semiannually on June 30 and December 31, were issued to yield 12%, and are due on December 31, 2023. Interest is amortized using the effective interest method, and the bonds are callable at
Wilbury Corporation issued $1 million of 13.5% bonds for $985,071.68. The bonds are dated and issued October 1, 2019, are due September 30, 2020, and pay interest semiannually on March 31 and September 30. Assume an effective yield rate of 14%.Required:1. Prepare a bond interest expense and
Before maturity, Foster Incorporated sold $500,000 of 12% bonds on January 1, 2019, for $470,143.47, a price that yields a 14% interest rate. The bonds pay interest semiannually on June 30 and December 31 and are due December 31, 2022. Foster uses the effective interest method.Required:1. Prepare
Bats Corporation issued $800,000 of 12% face value bonds for $851,705.70. The bonds were dated and issued on April 1, 2019, are due March 31, 2023, and pay interest semiannually on September 30 and March 31. Bats sold the bonds to yield 10%.Required:1. Prepare a bond interest expense and premium
Hillis Corporation issued $600,000 of 13% bonds on January 1, 2019, for $614,752.24. The bonds are due December 31, 2021, were issued to yield 12%, and pay interest semiannually on June 30 and December 31. Hillis uses the effective interest method.Required:1. Prepare a bond interest expense and
On January 1, 2019, Gates Corporation issued $100,000 of 5-year bonds due December 31, 2023, for $103,604.79 minus debt issuance costs of $3,000. The bonds carry a stated rate of interest of 13% payable annually on December 31 and were issued to yield 12%. The company uses the effective interest
On June 30, 2019, Gaston Corporation sold $800,000 of 11% face value bonds for $761,150.96. On December 31, 2019, Gaston sold $700,000 of this same bond issue for $734,645.28. The bonds were dated January 1, 2019, pay interest semiannually on each December 31 and June 30, and are due December 31,
Barnett Industries, Inc., issued $600,000 of 8% bonds on January 1, 2019. The bonds pay interest semiannually on July 1 and January 1. The maturity date on these bonds is December 31, 2028. The firm uses the effective interest method of amortizing discounts and premiums.The bonds were sold to yield
Refer to the debt restructuring information in E14-29.Required:Prepare the journal entries for Great National Bank to record the restructuring agreement assuming:1. The bank accepts the 10,000 shares of Boonville’s stock2. The bank accepts the land E14-29On January 1, 2019, Boonville
On December 31, 2019, Central Bank agrees to a restructuring of a 12% note with a $200,000 face value and $60,000 of accrued interest owed to the bank by Carter Company. The bank agrees to forgive the accrued interest, extend the maturity date to December 31, 2022, and reduce the annual interest
On January 1, 2019, Boonville Corporation is delinquent on a $300,000 note to Great National Bank on which $66,000 of interest has accrued. On January 2, 2019, Boonville enters into a debt restructuring agreement with the bank.Required:Prepare the journal entries for Boonville to record the
On January 1, 2019, Northfield Corporation becomes delinquent on a $100,000, 14% note to First National Bank, on which $16,651 of interest has accrued. On January 2, 2019, the bank agrees to restructure the note. It forgives the accrued interest, extends the repayment date to December 31, 2021, and
On January 1, 2019, Billips Corporation purchased equipment having a fair value of $72,054.94 by issuing a $90,000 note, payable in three $30,000 annual installments beginning December 31, 2019.Required:Prepare (1) the journal entry to record the purchase of the equipment, (2) a schedule
On January 1, 2019, Sanders Corporation purchased equipment having a fair value of $68,301.30 by issuing a non-interest-bearing, $100,000, 4-year note due December 31, 2022.Required:Prepare the journal entries to record (1) The purchase of the equipment, (2) The annual interest charges
Webb Corporation purchased an asset from Shaw Corporation on January 1, 2019. Shaw accepted a 3-year, non-interest-bearing note of $18,000 due December 31, 2021, in exchange for the asset. Neither the fair value of the asset nor that of the note is available. Webb’s incremental borrowing rate is
Spath Company borrows $75,000 by issuing a 4-year, non-interest-bearing note to a customer on January 1, 2019. In addition, Spath agrees to sell inventory to the customer at reduced prices over a 5-year period. Spath’s incremental borrowing rate is 12%. The customer agrees to purchase an equal
On January 1, 2019, Johnson Corporation issued a 2-year note due December 31, 2017, with a face value of $10,000, receiving $7,694.68 in exchange.Required:Prepare the journal entries to account for the note:1. On the date the note is issued2. At the end of 20193. At the end of 2020
On January 2, 2019, Lindsay Corporation issued $800,000 of 8% convertible bonds at par. The bonds mature in 10 years and pay interest semiannually on June 30 and December 31. Each $1,000 bond could be converted into 26 shares of the company’s $2.50 par value common stock. Alternatively, Lindsay
On July 2, 2018, McGraw Corporation issued $500,000 of convertible bonds. Each $1,000 bond could be converted into 20 shares of the company’s $5 par value stock. On July 3, 2020, when the bonds had an unamortized discount of $7,400 and the market value of the McGraw shares was $52 per share, all
On July 1, 2019, Salem Corporation issued $3 million of 12% bonds payable in 10 years. The bonds pay interest semiannually. The bonds include detachable warrants giving the bondholder the right to purchase for $30, one share of $1 par value common stock at any time during the next 10 years. Salem
On January 1, 2019, Conroe Corporation sold $500,000 of 13% bonds at 107. Each $1,000 bond carried 20 warrants, and each warrant allowed the holder to acquire one share of $10 par value common stock for $20 per share. Subsequent to the issuance of the securities, the bonds were quoted at 102 ex
On July 1, 2020, Tuttle Company had bonds payable outstanding with a face value of $200,000 and a book value of $194,000. The interest on these bonds was paid on June 30. When these bonds were issued, each $1,000 bond was convertible into 20 shares of $10 par common stock. To induce conversion, on
On January 1, 2018, when its $30 par value common stock was selling for $80 per share, a corporation issued $10 million of 10% convertible debentures due in 10 years. The conversion option allowed the holder of each $1,000 bond to convert it into six shares of the corporation’s $30 par value
Rockwood Company issued $100,000 of 10% bonds on November 1, 2019, at 103. Interest on the bonds is payable on November 1 and May 1 of each year, and the maturity date is November 1, 2029. Rockwood retired bonds with a face value of $20,000 on February 1, 2021, at 98 plus accrued interest.
On December 1, 2017, Cone Company issued its 10%, $2 million face value bonds for $2.3 million, plus accrued interest. Interest is payable on November 1 and May 1. On December 31, 2019, the book value of the bonds, inclusive of the unamortized premium, was $2.1 million. On July 1, 2020, Cone
On January 1, 2008, Davis Corporation issued $3,000,000 of 8% bonds at 103. Interest is paid annually on December 31 of each year. The bonds mature on December 31, 2027, and the company uses the straight-line method of amortization. On January 2, 2019, Davis reacquired the bonds and recognized a
Hill Corporation issued $1,500,000 of 11% bonds at 98 on January 2, 2019. Interest is paid semiannually on June 30 and December 31. The bonds had a 10-year life from the date of issue, and the company uses the straight-line method of amortization. On March 31, 2022, Hill recalls the bonds at the
On October 1, 2019, Ball Company issued 9% bonds dated October 1, 2019, with a face amount of $200,000. The bonds mature in 10 years. Interest is paid semiannually on March 31 and September 30. The proceeds from the bond issuance were $205,294.53 to yield 8.6%. Ball Company has a December 31 fiscal
Burr Motor Company, a manufacturer of small- to medium-sized electric motors, needs additional funds to market a revolutionary new motor. Burr has arranged for private placement of a $50,000, 5-year, 11% bond issue. Interest on these bonds is paid annually each year on August 31. The issue was
On January 1, 2019, Calvert Company issues 12%, $100,000 face value bonds for $103,545.91, a price to yield 10%. The bonds mature on December 31, 2020. Interest is paid semiannually on June 30 and December 31.Required:1. Prepare a bond interest expense and premium amortization schedule using the
Taylor Company issued $100,000 of 13% bonds on January 1, 2019. The bonds pay interest semiannually on June 30 and December 31 and are due December 31, 2021.Required:1. Assume the company sells the bonds for $102,458.71 to yield 12%. Prepare the journal entries to record:a. The sale of the bondsb.
The inventories of Berry Company for the years 2019 and 2020 are as follows:Berry uses the periodic inventory method and the FIFO inventory cost flow assumption.Required:1. Assume the inventory that existed at the end of 2019 was sold in 2020. Prepare the necessary journal entries at the end of
During the course of your examination of the financial statements of Burnett Co., a new client, for the year ended December 31, 2019, you discover the following:• Inventory at January 1, 2019, was understated by $6,000.• Inventory at December 31, 2019, was overstated by $5,000.During 2019, the
On December 31, 2018, Davison Company adopted the dollar-value LIFO retail inventory method. Inventory data for 2019 are as follows:Required:Compute the cost of Davison’s inventory at December 31, 2019. Retail LIFO Cost Inventory, 12/31/2018 Inventory, 12/31/2019 Increase in price level for 2019
Wyatt Company adopts the dollar-value LIFO retail inventory method on January 1, 2019. The company’s records reveal that the inventory on January 1, 2019, had a cost of $75,000 and a retail value of $120,000. During 2019, the cost of purchases made was $110,000, and the retail value was $165,000.
Johns Company adopts the dollar-value LIFO retail inventory method on January 1, 2019. The following information for 2019 is obtained from Johns’ records:The price index on January 1, 2019, was 100, and on December 31, 2019, it was 110.Required:Compute the cost of the inventory on December 31,
Polk Incorporated issued $200,000 of 13% bonds on July 1, 2019, for $206,801.60. The bonds were dated January 1, 2019, pay interest on each June 30 and December 31, are due December 31, 2023, and were issued to yield 12%. Polk uses the effective interest method of amortization.Required:Prepare the
Chowan Corporation issued $100,000 of 10% bonds dated January 1, 2019, for $96,832.72 on January 1, 2019. The bonds are due December 31, 2019, were issued to yield 11%, and pay interest semiannually on June 30 and December 31. Chowan uses the effective interest method of
Bryan Company issued $500,000 of 10% face value bonds on January 1, 2019, for $486,000. The bonds are due December 31, 2021, and pay interest semiannually on June 30 and December 31. Bryan uses the straight-line amortization method.Required:Prepare the journal entries to record the issuance of the
On January 1, 2019, Hackman Corporation issued $1 million face value 12% bonds dated January 1, 2019, for $1,023,000. The bonds pay interest semiannually on June 30 and December 31 and are due December 31, 2023. Hackman uses the straight-line amortization method.Required:Record the issuance of the
On January 1, 2019, Knorr Corporation issued $1,000,000 of 9%, 5-year bonds dated January 1, 2019. The bonds pay interest annually on December 31. The bonds were issued to yield 10%. Debt issuance costs associated with the bonds totaled $18,000.Required:Prepare the journal entries to record the
Burris Corporation is authorized to issue $800,000 of 9% bonds. Interest on the bonds is payable semiannually; the bonds are dated January 1, 2019, and are due December 31, 2023.Required:Prepare the journal entries to record the following:a. April 1, 2019 Sold the bonds at par plus accrued
Synergy Corporation is authorized to issue $1,200,000 of 8% bonds. Interest on the bonds is payable semiannually; the bonds are dated January 1, 2019, and are due December 31, 2023.Required:Prepare the journal entries to record the following:a. January 1, 2019 Sold the bonds at parb. June 30, 2019
Madison Corporation is authorized to issue $500,000 of 5-year bonds dated June 30, 2019, with a stated rate of interest of 11%. Interest on the bonds is payable semiannually, and the bonds are sold on June 30, 2019.Required:Determine the proceeds that the company will receive if it sells (1)
On January 2, 2019, Jennings Company purchases machinery and equipment and borrows $200,000 on a 5-year non-interest-bearing note. The principal of $200,000 will be paid at the maturity date of December 31, 2023. To place a fair value on the transaction, the accountant will impute an interest rate
On January 1, 2019, Boater Company issues a $20,000 non-interest-bearing, 5-year note for equipment. Neither the fair value of the note nor the equipment is determinable. Boater’s incremental borrowing rate is 9%. The asset has a useful life of 7 years. Prepare the journal entry for Boater to
On January 1, 2019, Branson Corporation issued $500,000 of convertible bonds at par value. The bonds were issued with a stated interest rate of 3%. Each $1,000 bond is convertible into 20 shares of the corporation’s $1 par value common stock. Branson may also elect to settle bonds with a cash
On January 1, 2019, Langdon & Co. issues bonds with a face value of $50,000 for $51,000. Each $1,000 bond carries 10 warrants, and each warrant allows the holder to acquire one share of $1 par common stock for $40 per share. Immediately after the issuance, the bonds are quoted at 99 ex rights
On June 1, 2019, Fignon Company recalls bonds with a face value of $200,000 and a current book value of $190,000. Fignon pays $192,000 to retire the bonds. Prepare the journal entry to record the retirement of the bonds.
Use the information in RE14-8, except assume that the bonds are sold for $318,000. Prepare the journal entries to record the issuance on April 1, 2019, and the first interest payment on October 1, 2019. Use the straight-line method to amortize the premium.RE14-8Bangles Corporation issued 5-year,
Bangles Corporation issued 5-year, 11% bonds with a face value of $300,000 on April 1, 2019, for $288,000. Interest is paid semiannually at October 1 and April 1. Prepare the journal entries to record the issuance on April 1, 2019, and the first interest payment on October 1, 2019. Use the
Use the information in RE14-6, except assume that Temple issues its bonds on March 1, 2019, at par, plus accrued interest. Prepare the journal entries to record the issuance of the bonds (adjust interest expense for the accrued interest) and the first semiannual interest payment.RE14-6On January 1,
On January 1, 2019 (the authorization date), Temple Company issues $500,000 of 9% bonds at 103. These bonds pay interest on June 30 and December 31. Prepare the journal entry to record the issuance of the bonds.
On January 1, 2019, North Company issued $2,000,000 of bonds with a stated rate of 10% that are due to mature December 31, 2025, and pay interest semiannually. The market rate of interest was 9% at the date of issuance. Prepare the journal entry for the sale of the bonds on January 1, 2019.
Refer to the information in RE14-3. Lightfoot uses the effective interest method to amortize the premium on June 30, 2019. Prepare the journal entry to record the first interest payment on June 30, 2019.RE14-3On January 1, 2019 Lightfoot Corporation issues 10%, 5-year bonds with a face value of
On January 1, 2019 Lightfoot Corporation issues 10%, 5-year bonds with a face value of $275,000 when the effective interest rate is 9%. Interest is to be paid semiannually on June 30 and December 31. Prepare calculations to prove that the selling price of the bonds is $285,880.07.
Refer to the information in RE14-1. Assume Canglon uses the effective interest method to amortize the discount. Prepare the journal entry to record the first interest payment on June 30, 2019.RE14-1On January 1, 2019, Canglon, Inc., issues 10%, 5-year bonds with a face value of $150,000 when the
On January 1, 2019, Canglon, Inc., issues 10%, 5-year bonds with a face value of $150,000 when the effective rate is 12%. Interest is to be paid semiannually on June 30 and December 31. Prepare calculations to prove that the selling price of the bonds is $138,959.90.
On January 1, 2019, when the market rate for bond interest was 14%, Lenoir Corporation issued bonds in the face amount of $500,000 with interest at 12% payable semiannually. The bonds mature on December 31, 2026, and were issued at a discount of $53,180. How much of the discount should be amortized
Pamlico Company has a $500,000, 15%, 3-year note dated January 1, 2019, payable to Forest National Bank. On December 31, 2020, the bank agreed to settle the note and unpaid interest of $75,000 for $50,000 cash and marketable securities having a current market value of $375,000. Pamlico’s
On January 1, 2019, Onslow Company borrowed $360,000 from a major customer evidenced by a non-interest-bearing note due in 3 years. Onslow agreed to supply the customer’s inventory needs for the loan period at lower than market price. At the 12% imputed interest rate for this type of loan, the
On July 1, 2019, Rix Corporation had $10,000,000 of 9% bonds outstanding. The maturity date is June 30, 2024. Interest is paid semiannually every June 30 and December 31. All the bonds were redeemed on July 1, 2019, at 98. At the time of the bond redemption, there was unamortized bond premium of
On December 31, 2019, Dare Corporation had outstanding 8%, $2,000,000 face value convertible bonds maturing on December 31, 2023. Interest is payable annually on December 31. Each $1,000 bond is convertible into 60 shares of Dare’s $10 par value common stock. On January 2, 2021, when the
On April 1, 2019, Granville Corporation issued, at 98 plus accrued interest, 400 of its 10%, $1,000 bonds. The bonds are dated January 1, 2019, and mature on December 31, 2025. Interest is payable semiannually on June 30 and December 31. From the bond issuance, Granville would realize net cash
On January 1, 2019, Bay Company issues bonds with a face value of $850,000 that pay 9% interest semiannually and mature in 15 years. The market interest rate at the date of issuance is 8%. What is the issue price of the bond?a. $850,000.00b. $923,491.41c. $815,386.52d. $567,656.32
Under what conditions would a debtor company recognize a gain after modifying the terms of its borrowing agreement?
Distinguish between bond premiums and discounts.
At the beginning of 2018, corporate tax rates decreased from 35% to 21%. Did this decrease in tax rates increase or decrease the advantage of financing with debt?
Why does issuing debt result in an income tax advantage when compared to issuing equity?
Why does debt financing typically have a lower cost of capital than equity financing?
Blaedon Co. makes ongoing design refinements to lawnmowers that are produced for it by contractors. Blaedon stores the lawnmowers in its own warehouse and sells them at list price, directly to retailers. Blaedon uses the FIFO inventory method. Approximately two-thirds of new lawnmower sales involve
Danburg Company has a $5 million, 9% bank loan outstanding with its local bank. On January 1, 2019, when the loan has 4 years remaining, Danburg contracts with Bradford Investment Bank to enter into a 4-year interest-rate swap with a $5 million notional amount. Danburg agrees to receive from
On January 1, 2018, Kehoe Corporation insured the lives of its president, vice president, controller, and treasurer for $100,000 each. The annual premium on each policy is $4,200, payable on January 1 of each year, and the cash surrender values for the policies increase by 4% of the annual premiums
During 2019, Francis Company decided to begin investing its idle cash in marketable securities. The information contained below relates to Francis’s 2019 marketable security transactions:Apr. 1 Purchased $50,000 face value of Spencer Inc. 12% bonds at par plus accrued interest; interest on the
Anglar Company has a $3 million, 7% bank loan from Castle Rock Bank. On January 1, 2019, when the $3 million loan has 3 years remaining, Anglar contracts with Susan Investment Bank to enter into a 3-year interest-rate swap with a $3 million notional amount. Anglar agrees to receive from Susan a
The following information is available concerning Nunan Corporation’s sinking fund:2019Jan. 1 Established a sinking fund to retire an outstanding bond issue by contributing $425,000.Feb. 3 Purchased securities for $400,000.July 30 Sold securities originally costing $48,000 for $45,000.Dec. 31
Showing 3500 - 3600
of 3974
First
26
27
28
29
30
31
32
33
34
35
36
37
38
39
40
Step by Step Answers
Get 50% OFF
Claim Now
