Question 2:

On January 1, 2017, Alpha Company purchased a significant influence shares investment in the Bravo-Zulu Company for $250,000. This investment balance represents 25% of the equity of the Bravo-Zulu Company. On November 15, 2017 Bravo-Zulu Company paid cash dividends of $10,000 to its shareholders and reported Net Income of $25,000 on December 31, 2017. Using this information, what are the FY 2017 balances in Alpha Company's account balances for:

a. Investment in Bravo-Zulu

b. Investment Income

Question 3

On Jan 1, 2016, Alpha Company issued $100,000 of 12%, 10-year bonds. The bonds were issued at par.

Interest is paid on July 1 and January 1. What would be the credit to Bonds Payable?

Question 4

Alpha Corporation issued $100,000 of 9%, 15-year bonds on June 1, 2016 at 101. What would be the amount for:

1. Cash

2. Bonds Payable

3. Premium

Question 5

On January 2, 2017, Alpha Company purchased 10,000 shares of the stock of Zulu Company, and did not obtain significant influence. The stock was purchased for $10 per share, and represents a 10% ownership stake. Zulu Company made $25,000 of net income in 2017, and paid dividends of $10,000 on December 15, 2017. Use this information to prepare the General Journal so as to determine what would be the:

(a) Dr to Stock Investments for the purchase

(b) Cr. to Dividend Revenue

Question 6

On Jan 1, 2016, Alpha Corporation issued $600,000 of 7%, 10-year bonds at 98. What is the carrying value of the bond?