Questions from Accounting Principles

Q: Lasu, Ramirez, and Toney, who share income and loss

Lasu, Ramirez, and Toney, who share income and loss in a 2:1:2 ratio (in percents: Lasu, 40%; Ramirez, 20%; and Toney, 40%), plan to liquidate their partnership. At liquidation, their balance sheet ap...

Q: Romero issues $3,400,000 of 10%, 10

Romero issues $3,400,000 of 10%, 10-year bonds dated January 1, 2021, that pay interest semiannually on June 30 and December 31. The bonds are issued at a price of $3,010,000. Required 1. Prepare the...

Q: Ripken Company issues 9%, five-year bonds dated January 1

Ripken Company issues 9%, five-year bonds dated January 1, 2021, with a $320,000 par value. The bonds pay interest on June 30 and December 31 and are issued at a price of $332,988. Their annual market...

Q: Gomez issues $240,000 of 6%, 15-year

Gomez issues $240,000 of 6%, 15-year bonds dated January 1, 2021, that pay interest semiannually on June 30 and December 31. They are issued at $198,494 when the market rate is 8%. Required 1. Prepar...

Q: On January 1, 2021, Gordon borrows $150,000

On January 1, 2021, Gordon borrows $150,000 cash from a bank by signing a three-year installment note bearing 10% interest. The note requires equal payments of $60,316 each year on December 31. Requi...

Q: On January 1, JCCC borrows $130,000 cash by

On January 1, JCCC borrows $130,000 cash by signing a 4-year, 5% installment note. The note requires four equal payments consisting of accrued interest and principal on December 31 for each of the nex...

Q: The following information is available for both Atlas Company and Bryan Company

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

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

Refer to the bond details in Problem 14-4B. 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 14-3B.

Refer to the bond details in Problem 14-3B. 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: Use Apple’s financial statements in Appendix A to answer the following.

Use Apple’s financial statements in Appendix A to answer the following. 1. Identify the total amount of cash and cash equivalents for fiscal years ended (a) September 28, 2019, and (b) September 29, 2...