Questions from Accounting Principles

Q: Raphael Corporation’s balance sheet shows the following stockholders’ equity section.

Raphael Corporation’s balance sheet shows the following stockholders’ equity section. Required 1. Determine the par values of the corporation’s pr...

Q: Ellis Company issues 6.5%, five-year bonds dated

Ellis Company issues 6.5%, five-year bonds dated January 1, 2021, with a $250,000 par value. The bonds pay interest on June 30 and December 31 and are issued at a price of $255,333. The annual market...

Q: Legacy issues $325,000 of 5%, four-year

Legacy issues $325,000 of 5%, four-year bonds dated January 1, 2021, that pay interest semiannually on June 30 and December 31. They are issued at $292,181 when the market rate is 8%. Required 1. Pre...

Q: Bug-Off Exterminators provides pest control services and sells extermination products

Bug-Off Exterminators provides pest control services and sells extermination products manufactured by other companies. The following six-column table contains the company’s unadjuste...

Q: On January 1, 2021, Norwood borrows $200,000

On January 1, 2021, Norwood borrows $200,000 cash from a bank by signing a five-year installment note bearing 8% interest. The note requires equal payments of $50,091 each year on December 31. Requir...

Q: On January 1, McNeil Company borrows $100,000 cash

On January 1, McNeil Company borrows $100,000 cash by signing a four-year, 9% installment note. The note requires four equal payments consisting of accrued interest and principal on December 31 for ea...

Q: The following information is available for both Pulaski Company and Scott Company

The following information is available for both Pulaski Company and Scott Company at the current year-end. Required 1. Compute the debt-to-equity ratio for both companies. 2. Which company has the ris...

Q: Refer to the bond details in Problem 14-4A.

Refer to the bond details in Problem 14-4A. Required 1. Prepare the January 1 journal entry to record the bonds’ issuance. 2. Determine the total bond interest expense to be recognized over the bonds...

Q: Refer to the bond details in Problem 14-3A.

Refer to the bond details in Problem 14-3A. Required 1. Compute the total bond interest expense over the bonds’ life. 2. Prepare an effective interest amortization table like the one in Exhibit 14B.2...

Q: Ike issues $180,000 of 11%, three-year

Ike issues $180,000 of 11%, three-year bonds dated January 1, 2021, that pay interest semiannually on June 30 and December 31. They are issued at $184,566 when the market rate is 10%. Required 1. Pre...