Questions from College Accounting

Q: Levesque Lumber Co. issued $800,000 in bonds at

Levesque Lumber Co. issued $800,000 in bonds at face value 10 years ago and has paid semiannual interest payments through the years. (a) Assume the bonds are redeemed at face value. (b) Assume that $8...

Q: Brighton Unlimited sold bonds at a premium for $630,000

Brighton Unlimited sold bonds at a premium for $630,000 (premium of $30,000) eight years ago. (a) The corporation redeems $60,000 of this issue at 98. The unamortized premium is $600. (b) The corporat...

Q: Mutschelknaus Manufacturing sold bonds at a discount for $290,000

Mutschelknaus Manufacturing sold bonds at a discount for $290,000 (discount of $10,000) seven years ago. (a) The corporation redeems $25,000 of this issue at 97. The unamortized discount is $350. (b)...

Q: M. J. Adams Corporation pays $40,000 into

M. J. Adams Corporation pays $40,000 into a bond sinking fund each year for the future redemption of bonds. At the end of the first year, earnings on the sinking fund are $3,200. When the bonds mature...

Q: Ito Co. issued the following bonds: Date of

Ito Co. issued the following bonds: Date of issue and sale: ……………………………………………………………. April 1, 20-1 Principal amount: ………………………………………………………………………. $300,000 Sale price of bonds: ……………………………………………………………...

Q: Bunkichi Corporation issued the following bonds at a premium:

Bunkichi Corporation issued the following bonds at a premium: Date of issue and sale: ………………………………………………………………. March 1, 20-1 Principal amount: ……………………………………………………………………………. $800,000 Sale price of b...

Q: The following activities took place during the current year. Indicate whether

The following activities took place during the current year. Indicate whether each activity is a cash inflow (+) or cash outflow (–), and whether it is an operating activity (O), an investing activity...

Q: Refer to Problem 23-9A. The following additional information was

Refer to Problem 23-9A. The following additional information was obtained from Zowine’s financial statements and auxiliary records for the year ended December 31, 20-2: Acquired a n...

Q: Why is it necessary to distinguish between business assets and liabilities and

Why is it necessary to distinguish between business assets and liabilities and nonbusiness assets and liabilities of a single proprietor?

Q: Olsen Company’s balance sheets as of December 31, 20-2

Olsen Company’s balance sheets as of December 31, 20-2 and 20-1, showed the following with regard to cash and cash equivalents: Compute the amount of change in cash and cash equivale...