Question
On January 1 of Year 1, Congo Express Airways issued $3,400,000 of 7% bonds that pay interest semiannually on January 1 and July 1. The
On January 1 of Year 1, Congo Express Airways issued $3,400,000 of 7% bonds that pay interest semiannually on January 1 and July 1. The bond issue price is $3,100,000 and the market rate of interest for similar bonds is 8%. The bond premium or discount is being amortized at a rate of $10,000 every six months. After accruing interest at year end, the company's December 31, Year 1 balance sheet should reflect total liabilities associated with the bond issue in the amount of:
Multiple Choice
-
$3,239,000.
-
$3,001,000.
-
$3,120,000.
-
$3,799,000.
-
$3,680,000.
On July 1, Shady Creek Resort borrowed $300,000 cash by signing a 10-year, 10.5% installment note requiring equal payments each June 30 of $49,877. What amount of interest expense will be included in the first annual payment?
Multiple Choice
-
$30,000
-
$49,877
-
$281,623
-
$31,500
-
$18,377
A corporation issued 8% bonds with a par value of $1,120,000, receiving a $44,000 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 called the bonds at $1,108,800. The gain or loss on this retirement is:
Multiple Choice
-
$11,200 loss.
-
$37,600 gain.
-
$11,200 gain.
-
$37,600 loss.
-
$0.
Mayan Company had net income of $33,670. The weighted-average common shares outstanding were 9,100. The company has no preferred stock. The company's earnings per share is:
Multiple Choice
-
$5.00.
-
$3.64.
-
$3.76.
-
$1.35.
-
$3.70.
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started