Questions from Financial Accounting

Q: Bocelli Co. purchased $120,000 of 6%, 20

Bocelli Co. purchased $120,000 of 6%, 20-year Sanz County bonds on May 11, Year 1, directly from the county, at their face amount plus accrued interest. The bonds pay semiannual interest on April 1 an...

Q: Pecan Theatre Inc. owns and operates movie theaters throughout Florida and

Pecan Theatre Inc. owns and operates movie theaters throughout Florida and Georgia. Pecan Theatre has declared the following annual dividends over a six-year period: Year 1, $80,000; Year 2, $90,000;...

Q: The following bond investment transactions were completed during a recent year by

The following bond investment transactions were completed during a recent year by Starks Company: Year 1 Jan. 31. Purchased 75, $1,000 government bonds at 100 plus accrued interest of $375 (one month)...

Q: On February 1, Hansen Company purchased $120,000 of

On February 1, Hansen Company purchased $120,000 of 5%, 20-year Knight Company bonds at their face amount plus one month’s accrued interest. The bonds pay interest on January 1 and July 1. On October...

Q: On February 22, Stewart Corporation acquired 12,000 shares of

On February 22, Stewart Corporation acquired 12,000 shares of the 400,000 outstanding shares of Edwards Co. common stock at $50 plus commission charges of $120. On June 1, a cash dividend of $1.40 per...

Q: The following equity investment transactions were completed by Romero Company during a

The following equity investment transactions were completed by Romero Company during a recent year: Apr. 10. Purchased 5,000 shares of Dixon Company for a price of $25 per share plus a brokerage commi...

Q: Yerbury Corp. manufactures construction equipment. Journalize the entries to record

Yerbury Corp. manufactures construction equipment. Journalize the entries to record the following selected equity investment transactions completed by Yerbury during a recent year: Feb. 2. Purchased f...

Q: Seamus Industries Inc. buys and sells investments as part of its

Seamus Industries Inc. buys and sells investments as part of its ongoing cash management. The following investment transactions were completed during the year: Feb. 24. Acquired 1,000 shares of Tett C...

Q: At a total cost of $5,600,000,

At a total cost of $5,600,000, Herrera Corporation acquired 280,000 shares of Tran Corp. common stock as a long-term investment. Herrera Corporation uses the equity method of accounting for this inves...

Q: On January 4, Year 1, Ferguson Company purchased 480,

On January 4, Year 1, Ferguson Company purchased 480,000 shares of Silva Company directly from one of the founders for a price of $30 per share. Silva has 1,200,000 shares outstanding, including the D...