All Matches

Solution Library

Expert Answer

Textbooks

Search Textbook questions, tutors and Books

Oops, something went wrong!

Change your search query and then try again

Result Not Found

Books FREE
Tutors
Study Help
Ask a Question
AI Study Help New

Search
Sign In
Register

study help
business
accounting

Questions and Answers of Accounting

On January 1, 2011, Park Corporation sold a $600,000, 7.5 percent bond issue (8.5 percent market rate). The bonds were dated January 1, 2011, pay interest each June 30 and December 31, and mature in
Using data from the previous exercise, complete each of the requirements in Exercise 10-9 without using a discount account.
Westover Corporation had $300,000, 10-year bonds outstanding on December 31, 2011 (end of the accounting period). Interest is payable each December 31. The bonds were issued on January 1, 2011. The
Santa Corporation sold a $1,000 bond on January 1, 2011. The bond specified an interest rate of 6 percent payable at the end of each year. The bond matures at the end of 2013. It was sold at a market
The annual report of American Airlines contained the following note:The Company recorded the issuance of $775 million in bonds (net of $25 million discount) as long-term debt on the consolidated
The annual report for Walt Disney Company contained the following note:The Company has outstanding $1.3 billion of convertible senior notes due on April 15, 2023. The notes bear interest at a fixed
You are a personal financial planner working with a married couple in their early 40s who have decided to invest $100,000 in corporate bonds. You have found two bonds that you think will interest
On January 1, 2011, Victor Corporation sold a $1,400,000, 8 percent bond issue (6 percent market rate). The bonds were dated January 1, 2011, pay interest each June 30 and December 31, and mature in
On January 1, 2011, Frog Corporation sold a $2,000,000, 10 percent bond issue (8.5 percent market rate). The bonds were dated January 1, 2011, pay interest each June 30 and December 31, and mature in
Using data from the previous exercise, complete each of the requirements in Exercise 10-17 without using a premium account.
Houston Company issued a $10,000, three-year, 5 percent bond on January 1, 2011. The bond interest is paid each December 31. The bond was sold to yield 4 percent.Required:1. Complete a bond
Denver Corporation sold a $300,000, 6 percent bond issue on January 1, 2011, at a market rate of 3 percent. The bonds were dated January 1, 2011, with interest to be paid each December 31; they
Gateway Company issued a $1 million bond that matures in 10 years. The bond has a 10 percent stated rate of interest. When the bond was issued, the market rate was 8 percent. The bond pays interest
Several years ago, Walters Company issued a $600,000 bond at par value. As a result of declining interest rates, the company has decided to call the bond at a call premium of 5 percent. Record the
The Mira Vista Company issued $500,000 in bonds at a discount five years ago. The current book value of the bonds is $475,000. The company now has excess cash on hand and plans to retire the bonds.
A number of events over the life of a bond have effects that are reported on the statement of cash flows. For each of the following events, determine whether the event affects the statement of cash
Arbor Corporation's financial statements for 2011 showed the following:Income StatementRevenues ......... $300,000Expenses .......... (196,000)Interest expense ....... (4,000)Pretax income ........
On January 1, 2011, Nowell Company issued $300,000 in bonds that mature in five years. The bonds have a stated interest rate of 8 percent and pay interest on June 30 and December 31 each year. When
Barnett Corporation sold a $500,000, 7 percent bond issue on January 1, 2011. The bonds pay interest each June 30 and December 31 and mature 10 years from January 1, 2011. For comparative study and
Akron Corporation, whose annual accounting period ends on December 31, issued the following bonds:Date of bonds: January 1, 2011Maturity amount and date: $100,000 due in 10 yearsInterest: 10 percent
On January 1, 2011, Cunningham Corporation issued $200,000 in bonds that mature in 10 years. The bonds have a stated interest rate of 6 percent and pay interest on December 31. When the bonds were
On January 1, 2011, Antonio Company issued $700,000 in bonds that mature in 10 years. The bonds have a stated interest rate of 8 percent and pay interest on June 30 and December 31 each year. When
On January 1, 2011, TCU Utilities issued $1,000,000 in bonds that mature in 10 years. The bonds have a stated interest rate of 10 percent and pay interest on June 30 and December 31 each year. When
Electrolux Corporation manufactures electrical test equipment. The company’s board of directors authorized a bond issue on January 1, 2011, with the following terms:Maturity (par) value:
On January 1, 2011, Vigeland Corporation issued $2,000,000 in bonds that mature in 10 years. The bonds have a stated interest rate of 10 percent and pay interest on June 30 and December 31 each year.
On January 1, 2011, Cron Corporation issued $700,000 in bonds that mature in five years. The bonds have a stated interest rate of 13 percent and pay interest on June 30 and December 31 each year.
Commonwealth Company issued bonds with the following provisions:Maturity value: $300,000Interest: 11 percent per annum payable annually each December 31Terms: Bonds dated January 1, 2011, due five
MBTA Corporation issued bonds and received cash in full for the issue price. The bonds were dated and issued on January 1, 2011. The stated interest rate was payable at the end of each year. The
DirectTV is the largest provider of direct-to-home digital television services and the second largest provider in the multichannel video programming distribution industry in the United States. It
McDermott International is an engineering and construction company with significant oil and gas operations. The annual report for McDermott contains the following note:The company used cash on hand
Determine whether each of the following would be reported in the financing activities section of the statement of cash flows and, if so, specify whether it is a cash inflow or outflow.1. Sale of
On January 1, 2011, Trucks R Us Corporation issued $2,000,000 in bonds that mature in five years. The bonds have a stated interest rate of 10 percent and pay interest on June 30 and December 31 each
On January 1, 2011, Bidden Corporation sold and issued $100,000, five-year, 10 percent bonds. The bond interest is payable each June 30 and December 31. Assume three separate and independent selling
On January 1, 2011, Kennedy Corporation issued $1,000,000 in bonds that mature in five years. The bonds have a stated interest rate of 7 percent and pay interest on December 31 each year. When the
On January 1, 2011, Avaya Corporation issued $2,000,000 in bonds that mature in five years. The bonds have a stated interest rate of 6 percent and pay interest on December 31 each year. When the
On January 1, 2011, Grand Isle Corporation issued $900,000 in bonds that mature in five years. The bonds have a stated interest rate of 10 percent and pay interest on December 31 each year. When the
On January 1, 2011, Thomas Insurance Corporation issued $4,000,000 in bonds that mature in five years. The bonds have a stated interest rate of 9 percent and pay interest on December 31 each year.
AMC Entertainment, Inc., owns and operates 243 movie theaters with 1,617 screens in 22 states. The company sold 11 7/8 percent bonds in the amount of $52,720,000 and used the cash proceeds to retire
Finding Financial Information Refer to the financial statements of American Eagle Outfitters given in Appendix B at the end of this book.Required:1. How much interest was paid in cash during the
Finding Financial Information Refer to the financial statements of Urban Outfitters given in Appendix C at the end of this book.Required:1. Unlike most companies, Urban Outfitters does not report
Comparing Companies within an Industry Refer to the financial statements of American Eagle (Appendix B) and Urban Outfitters (Appendix C) and the Industry Ratio Report (Appendix D) at the end of
JCPenney Company was one of the first companies to issue zero coupon bonds. It issued bonds with a face (maturity) value of $400 million due eight years after issuance. When the bonds were sold to
You work for a small company considering investing in a new Internet business. Financial projections suggest that the company will be able to earn in excess of $40 million per year on an investment
Assume that you are a portfolio manager for a large insurance company. The majority of the money you manage is from retired school teachers who depend on the income you earn on their investments. You
Distinguish between the following pairs of terms:a. Debt securities classified as held to maturity” versus “available for sale”b. Equity securities classified as ‘trading securities” versus
What is the justification of authoritative guidance for including unrealized holding gains and losses on trading securities in income but reporting unrealized holding gains and losses on securities
Reporting marketable securities available for sale at fair value on the balance sheet but not including the unrealized holding gains and losses in income is inconsistent and provides an opportunity
When is a derivative also an accounting hedge? When is it not also an accounting hedge? Can management manipulate earnings by its choice of whether to use hedge accounting?
Distinguish between a fair value hedge and a cash flow hedge.
The recognition of a derivative classified as a fair value hedge of a firm commitment as an asset but not recognizing the commitment that the derivative is hedging as a liability is inconsistent. Do
Both U.S. GAAP and IFRS require the immediate recognition in net income of unrealized gains and losses on derivatives hedging recognized assets and liabilities treated as lair value hedges. Both U.S.
Suggest reasons why a firm would acquire a derivative and not treat it as an accounting hedge.
Adopting the fair value option for marketable securities and derivatives collapses the accounting methods discussed in this chapter to a single accounting method. Do you agree? Why or why not?
Classifying securities. Firms that do not elect the fair value option classify marketable securities along two dimensions:• Purpose of investment: debt securities held to maturity, trading
Accounting principles for marketable securities and derivations. For each of the items a to d below describe its accounting using one of the following four systems, assuming that the firm does not
Accounting for bonds held to maturity. Murray Company acquired $ 100.000 face value of the outstanding bonds of Campbell Company on January 1. 2008. The bonds pay interest semiannually on June 30
Accounting for bonds held to maturity. Kelly Company acquired $500.000 face value of the outstanding bonds of Steedly Company on January 1 2008. The bonds pay interest semiannually on June 30 and
Accounting for securities available for sale. Events related to Elston Corporation's investments of temporarily excess cash appear below. The firm classifies these investments as securities available
Accounting for securities available for sale. Events related to Simmons Corporation's investments of temporarily excess cash appear below. The firm classifies these investments as securities
Working backward from data on marketable securities transaction. (Adapted from a problem by S.A. Zeff.) During 2008, Fischer/Black Co. purchased equity securities classified as securities available
Working backward from data on marketable securities transaction. (Adapted from a problem by S. A. Zeff.) On December 12, 2008, Canning purchased 2,000 shares of Werther. By December 31, the market
Reconstructing events from journal entries. Give the likely transaction or event that would result in making each of the independent journal entries thatfollow:
Reconstructing transactions involving short-term securities available for sale. During 2008, Zeff Corporation sold marketable securities for $14,000 that had a carrying value of $13,000 at the time
Accounting for forward foreign exchange contract is a fair value hedge. On September 1, 2008, Turner Corporation places an order with a Japanese supplier for manufacturing equipment for delivery on
Accounting for forward foreign exchange contract as a cash flow hedge. On October 1, 2008, Riddle Corporation purchases equipment from a supplier in France on account at a purchase price of
Journal entries and financial statement presentation of short-term securities available for sale. The following information summarizes data about Dostal Corporation's marketable securities held as
Journal entries and financial statement presentation of long-term securities available for sale. The following information summarizes data about Rice Corporation's investments in equity securities
Analysis of financial statement disclosures for securities available for sale. Exhibit 12.9 reproduces data about the marketable equity securities held as securities available for sale for Moonlight
Effect of various methods of accounting for marketable equity securities. Information related to marketable equity securities of Callahan Corporation appears on the next page.a. Assume that these
Analysis of financial statement disclosures related to marketable securities and quality of earnings. A commercial bank reports the following information relating to its marketable securities
Accounting for forward commodity price contract as a cash flow hedge. Refer to Examples 15 and 19 in the chapter. Firm D holds 10,000 gallons of whiskey in inventory on October 31, 2008, that costs
Accounting for forward foreign exchange contract as a fair value hedge and a cash flow hedge. On October 1, 2008, Owens Corporation places an order with a European supplier for manufacturing
Accounting for an interest rate snap as a fair value hedge. Sandretto Corporation issues a note payable on January 1, 2008, to a supplier in return for equipment. The note has a face value of
Accounting for an interest rate swap as a cash flow hedge. Avery Corporation issues a note payable on January 1, 2008, to a supplier in return for equipment. The note has a face value of $50.000 and
Distinguish between significant influence and control, and describe how these concepts relate to the method of accounting for intercorporate investments.
“Dividends received or receivable from another company are a revenue in calculating net income, a return of investment, or eliminated, depending on the method of accounting the investor uses.”
Describe the rationale for why an investor using the equity method must amortize any excess purchase price attributable to undervalued assets with a limited life.
Describe the rationale for why an investor using the equity method must eliminate any intercompany profit or loss on transactions between the investor and the investee.
Describe the rationale for why an investor using the equity method must recognize its share of Other Comprehensive Income of the investee.
Why is the equity method sometimes described as a one-line consolidation? Consider both the balance sheet and the income statement in your response.
“Accounting for an investment in a subsidiary using the equity method and not consolidating it yields the same net income as consolidating the subsidiary. Total assets will differ, however,
Distinguish between minority investments in other companies and the non-controlling, or minority, interest in a consolidated subsidiary.
Define the concept of an economic entity and explain its importance in preparing consolidated financial statements of a parent company with its controlled subsidiaries.
The investment in Subsidiary account is an asset. Why must an investor eliminate this account when preparing consolidated financial statements with the subsidiary?
Distinguish between the non-controlling, or minority, interest in net income and the non- controlling, or minority, interest in net assets of a consolidated subsidiary
Does accounting for an investment in a joint venture using (1) the equity method or (2) proportionate consolidation reflect better the nature of the relation between each joint owner and the joint
Under what circumstances might majority ownership of another entity not serve as an indicator of control?
Equity method entries. Hanna Company purchased 100% of the common stock of Denver Company on January 2 for $550,000. The common stock of Denver Company at this date was $200,000, and the retained
Equity method entries. Weber Corporation acquired significant influence over Albee Computer Company on January 2 by purchasing 20% of its outstanding stock for $100 million. Weber Corporation
Journal entries to apply the equity method of accounting for investments in securities. Wood Corporation made three long-term inter-corporate investments on January 2. Data relating to these
Journal entries to apply the equity method of accounting for investment in securities. The following information summarizes data about the minority, active investments of Stebbins Corporation.Company
Working backward to consolidation relations. Laesch Company, as parent, owns shares in Lily Company. Laesch has owned the shares since it formed Lily. Lily has never declared a dividend. Laesch has
Working backward from consolidated income statements. Dealco Corporation published a consolidated income statement for the year, shown in Exhibit 13.10. The unconsolidated affiliate retained 25% of
Conso1idation policy and principal consolidation concepts. CAR Corporation manufactures computers in the United States. It owns 75% of the voting stock of Charles Electronics, 80% of the voting stock
Equity method entries. Vogel Company is a subsidiary of Joyce Company. Joyce Company accounts for its investment in Vogel Company using the equity method on its single- company books Present journal
Working backward from data that has eliminated intercompany transactions. (Adapted from a problem by S. A. Zeff.) Alpha owns 100% of Omega and consolidates Omega in an entity called Alpha/Omega.
Working backward from purchase data. (Adapted from a problem by S. A. Zeff.) On May 1, 2008, Homer acquired the assets and agreed to take on and pay off the liabilities of Tonga in exchange for
Effect of equity method versus consolidation. Exhibit 13.11 presents a spreadsheet that we use to compare the effects of using the equity method with using consolidated financial statement. The Web
Effect of errors on financial statements. Using the notation O/S (overstated), U/S (understated), or NO (no effect), indicate the effects on assets, liabilities, shareholders equity, and net income
Accounting for a joint venture. Exhibit 13.12 presents selected balance sheet data for Parrot Corporation and for a joint venture in which it has a 50% ownership interest.a. Prepare a balance sheet

Showing 10200 - 10300 of 107832

First
96
97
98
99
100
101
102
103
104
105
106
107
108
109
110
Last

Services

Sitemap
Fun
Definitions
Become Tutor
Study Help Categories
Recent Questions
Expert Questions

Company Info

Security
Copyrights
Privacy Policy
Terms & Conditions
SolutionInn Fee
Scholarship

Get In Touch

About Us
Contact Us
Career
Jobs
FAQ
Campus Ambassador

Secure Payment

Download Our App

© 2024 SolutionInn. All Rights Reserved