Questions from Accounting Principles

Q: Golden Inc. issues $4 million, 5-year,

Golden Inc. issues $4 million, 5-year, 10% bonds at 102, with interest payable annually on January 1. The straight-line method is used to amortize bond premium. a. Prepare the journal entry to record...

Q: Writing Presented below is the partial bond discount amortization schedule for Gomez

Writing Presented below is the partial bond discount amortization schedule for Gomez Corp. Gomez uses the effective-interest method of amortization. a. Prepare the journal entry to record the paymen...

Q: Randle Inc. issues $300,000, 10-year

Randle Inc. issues $300,000, 10-year, 8% bonds at 98. Prepare the journal entry to record the sale of these bonds on March 1, 2020.

Q: Noler Company owns 25% of Lauer Company. For the current

Noler Company owns 25% of Lauer Company. For the current year, Lauer reports net income of $180,000 and declares and pays a $50,000 cash dividend. Record Noler’s equity in Lauer’s net income and the r...

Q: The cost of the trading debt securities of Munoz Company at December

The cost of the trading debt securities of Munoz Company at December 31, 2020, is $64,000. At December 31, 2020, the fair value of the securities is $59,000. Prepare the adjusting entry to record the...

Q: Financial Statement For the data presented in BE16.4, show

Financial Statement For the data presented in BE16.4, show the financial statement presentation of the trading securities and related accounts. Data from BE16.4: The cost of the trading debt securiti...

Q: In its first year of operations, Godfrey Corporation purchased, as

In its first year of operations, Godfrey Corporation purchased, as a long-term investment, available-for-sale debt securities costing $72,000. At December 31, 2020, the fair value of the securities is...

Q: Financial Statement For the data presented in BE16.6, show

Financial Statement For the data presented in BE16.6, show the financial statement presentation of the securities and related accounts. Assume the securities are noncurrent. Data from BE16.6: In its...

Q: Financial Statement Kruger Corporation has the following long-term investments.

Financial Statement Kruger Corporation has the following long-term investments. (1) Common stock of Eidman Co. (10% ownership), cost $108,000, fair value $115,000. (2) Common stock of Pickerill Inc. (...

Q: Christina Corporation purchased 400 shares of Nolan Inc. common stock for

Christina Corporation purchased 400 shares of Nolan Inc. common stock for $13,200 (Christina does not have significant influence). During the year, Nolan paid a cash dividend of $3.25 per share. At ye...