Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

The Square Foot Grill, Inc. issued $176,000 of 10-year, 8 percent bonds on January 1, Year 1, at 102. Interest is payable in cash annually

image text in transcribed
image text in transcribed
image text in transcribed
The Square Foot Grill, Inc. issued $176,000 of 10-year, 8 percent bonds on January 1, Year 1, at 102. Interest is payable in cash annually on December 31. The straight-line method is used for amortization, Required a. Use a financial statements model like the one shown below to demonstrate how (1) the January 1, Year 1. bond issue and (2) the December 31, Year 1 recognition of interest expense, including the amortization of the premium and the cash payment, affects the company's financial statements. Use + for increase - for decrease, and if there is no effect, leave the cell blank b. Determine the carrying value (face value less discount or plus premium) of the bond liability as of December 31, Year 1 c. Determine the amount of interest expense reported on the Year 1 income statement d. Determine the carrying value of the bond liability as of December 31, Year 2 e. Determine the amount of interest expense reported on the Year 2 income statement Answer is not complete. Complete this question by entering your answers the tabs below. Reg A Reg to b. Determine the carrying value (face value less discount or plus premium) of the bond liability as of December 31, Year 1. c. Determine the amount of interest expense reported on the Year 1 income statement. d. Determine the carrying value of the bond liability as of December 31, Year 2 c. Determine the amount of interest expense reported on the Year 2 income statement Show less $ 179,520 C Carrying value Year Interest expense Year 1 Carrying value Year 2 Interest expense Year 2 d Heatwave Gaming develops, markets, and publishes electronic games ZipTrain is one of the largest railway networks in the nation with over 27000 miles of railroads. The following data were taken from each of the companies December 31, 2017, annual reports, Revealing which data relate to which company was intentionally omitted. The dollar amounts are in milions Company Company 2 Sales 5 8,170 $1,903,400 Depreciation costs 880 57,465 Net earnings 363 96,431 Current assets 3,033 Property, plant, and equipment 339,178 24,863 2,535,624 1,282,152 19,915 Total assets Required a. Calculate depreciation costs as a percentage of sales for each company (Round your percentage answers to 2 decimal places fi.e., 0.0123 is entered os 1.23%...) b. Calculate property, plant, and equipment as a percentage of total assets for each company. (Round your percentage answers to 2 decimal places (ie, 0.0123 is entered as 123).) C. Based on the information now available to you, which company is Ziptrain? d. Which company appears to be using its assets most efficiently? Company 1 Company 2 9811 13.40 Depreciation based on sales b. Percentage of plant to total assets Based on the information now available c to you, which company is Ziptrain? & Managing its assets more efficiently Company 1 Company 2 Roth Service Co experienced the following transactions for Year 1, its first year of operations 1. Provided $84.000 of services on account 2. Collected $55,200 cash from accounts receivable 3. Paid $30,000 of salaries expense for the year. 4. Roth adjusted the accounts using the following information from an accounts receivable aging schedule: Allowance Balance Number of Days Past Due Current 2-30 31-60 61-90 Over 90 days. Amount $15, 100 5,000 3,300 1,700 3,700 Percent likely to be Uncollectible 0.01 0.05 0.10 0.30 0.50 Required a. Organize the transaction data in accounts under an accounting equation b. Prepare an income statement for Roth Service Co. for Year 1 c. What is the net realizable value of the accounts receivable at December 31, Year 1? Answer is complete but not entirely correct. Complete this question by entering your answers in the tabs below. Required A Required B Required C What is the net realizable value of the accounts receivable at December 31. Year 12 Net realizablo value S 22 598

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image_2

Step: 3

blur-text-image_3

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Governmental Accounting Auditing And Financial Reporting

Authors: Stephen J. Gauthier

1st Edition

0891252754, 978-0891252757

More Books

Students also viewed these Accounting questions

Question

What attracts you about this role?

Answered: 1 week ago

Question

How many states in India?

Answered: 1 week ago

Question

HOW IS MARKETING CHANGING WITH ARTIFITIAL INTELIGENCE

Answered: 1 week ago