Questions from Accounting Principles

Q: The following section is taken from Ohlman Corp.’s balance sheet

The following section is taken from Ohlman Corp.’s balance sheet at December 31, 2019. Bond interest is payable annually on January 1. The bonds are callable on any interest date....

Q: The following are two independent situations. 1. Longbine Corporation

The following are two independent situations. 1. Longbine Corporation redeemed $130,000 face value, 12% bonds on June 30, 2020, at 102. The carrying value of the bonds at the redemption date was $117,...

Q: Jernigan Co. receives $300,000 when it issues a

Jernigan Co. receives $300,000 when it issues a $300,000, 10%, mortgage note payable to finance the construction of a building at December 31, 2020. The terms provide for annual installment payments o...

Q: Mr. Taliaferro is studying for an accounting test and has developed

Mr. Taliaferro is studying for an accounting test and has developed the following questions about investments. 1. What are three reasons why companies purchase investments in debt or stock securities?...

Q: Financial Statement At December 31, 2020, the trading debt securities

Financial Statement At December 31, 2020, the trading debt securities for Storrer, Inc. are as follows. Instructions a. Prepare the adjusting entry at December 31, 2020, to report the securities at...

Q: Data for debt investments classified as trading securities are presented in E16

Data for debt investments classified as trading securities are presented in E16.10. Assume instead that the investments are classified as available for- sale debt securities. They have the same cost a...

Q: Kershaw Electric sold $6,000,000, 10%,

Kershaw Electric sold $6,000,000, 10%, 10-year bonds on January 1, 2020. The bonds were dated January 1, 2020, and paid interest on January 1. The bonds were sold at 98. Instructions a. Prepare the j...

Q: Uttinger Company has the following data at December 31, 2020.

Uttinger Company has the following data at December 31, 2020. The available-for-sale securities are held as a long-term investment. Instructions a. Prepare the adjusting entries to report each clas...

Q: Hatfield Corporation reports the following amounts in its 2020 financial statements:

Hatfield Corporation reports the following amounts in its 2020 financial statements: Instructions a. Compute the December 31, 2020, balance in stockholders’ equity. b. Compute the...

Q: On January 1, 2020, Throm Inc. entered into an

On January 1, 2020, Throm Inc. entered into an agreement to lease 20 computers from Drummond Electronics. The terms of the lease agreement require three annual rental payments of $20,000 (including 10...