Save 1 31 1 5 1 | 0 10 12 11 13 14 15 16 18 17 20 19 Unit 1 Crossword Puzzle Income loss) for the first three years of ending balances in its warranty lability of operations, respectively: $4,200,($2,500). $85,200 and $61,501, respectively. The and $3,300. If the balance of Retained company estimates warranty costs to be Earnings at the end of year 3 is $3.490, the 1% of sales. Sales were $19 million during total amount of dividends pald over the the year. Actual warranty expenditures three-year period is during the year were 5. ABC enters a futures contract to buy 2. ABC entered into an interest rate swap 2 points 400 bushels of wheat at $5.50 each. If the with a swap bank. ABC pays variable spot price on settlement date is $4.00. Interest to the bank and receives fixed ABC's total loss is Interest at 8%. The notional principal is $300.000. If the variable rate at 7. ABC issued $400,000 of 8% settlement is 8.7%, the net cash settlement eBook semiannual bonds for $426,425 when the on the swap is paid by ABC market rate was 7%. ABC uses the effective interest method. At the first 4. ABC purchased a put option on 100 References Interest payment date, Interest expense is shares of XYZ stock. The exercise price is $96. If the current stock price is $85 and the time value of the option is $70, the 8. ABC issued $550.000 bonds at par and balance of the Put Option account is designates an Interest rate swap as a falr value hedge of the bonds. During the year the fair value of the bonds falls to 6. ABC issued $106.000 of 7% semiannual $507,201. On the balance sheet ABC bonds for $98.797 when the market rate shows the bonds at was 8%. ABC uses the effective Interest method. Immediately after the second 11. A company had the following balances Interest payment date, carrying value of after its first year of operations: assets, the bonds is $16.500; stockholders' equity. $8.600: dividends. $400; and net income. $1.300. The amount of liabilities is Use the following information to answer 15. ABC purchased a call option on 100 the next 2 clues shares of XYZ stock. The strike price is $80. If the current stock price is $92, the A company had the following balances at Intrinsic value of the option contract is year-end: accounts payable $4,600: cash. $3.152: common stock, $1,702: deferred revenue. $1.200: equipment. $5.800: 16. ABC has a call option on 100 shares of notes receivable. $6.400: prepaid rent. XYZ stock. The exercise price is $98. If $3.100: supplies, $550. the current stock price is $95 and the time value of the option is $106, the balance of 9. Total assets is the Call Option account is 10. Retained earnings is 17. A company reported beginning balances in Retained Earnings and Common Stock of $455,000 and $582,000, respectively. During the year. 12 ABC issued $945.000,6% bonds that the company pald dividends of $16.000 mature in 10 years. The bonds make and issued additional common stock for annual payments. The market rate was $21.950. At the end of the year, total 5.5% on Issue date. The issue price is stockholders' equity is $1.140.000. Net Income is 13. ABC has an outstanding lawsuit with a probable loss of $26,470, and a second lawsuit with a reasonably possible loss of Use the following information to answer $42,300. Under GAAP ABC should the next 2 clues. accrue a contingent liability of ABC issued $35,000 of 4% semiannual bonds for $29,591 when the market rate 14. ABC repurchased their $500.000 was 5% The bonds mature In 30 years. bonds at 99. At that time, the unamortized ABC uses the straight-line interest premium was $12705. The gain on method redemption is 18. At the second interest payment date. 20. XYZ expects a 51% probability of Interest expense is losing a pending lawsuit. It estimates the loss to fall between $8,350 and $11,540 19. After the third Interest payment, the with any amount in that range equally balance of the discount is likely. Under IFRS, XYZ should accrue a