Questions from Financial Accounting

Q: Lowell Co. issued $450,000 of 5% (

Lowell Co. issued $450,000 of 5% (0.05), 10-year bonds payable on January 1, 2010, when the market interest rate was 6% (0.06). The company pays interest annually at year-end. The issue price of the b...

Q: Footnote 7 of AnnTaylor Stores Corp.’s financial statements for fiscal

Footnote 7 of AnnTaylor Stores Corp.’s financial statements for fiscal year 2010 contains the following information: 7. Commitments and Contingencies Operating Leases The Company occupies its retail s...

Q: Companies that operate in different industries may have very different financial ratio

Companies that operate in different industries may have very different financial ratio values. These differences may grow even wider when we compare companies located in different countries. Compare t...

Q: United Nation Financial Services is considering two plans for raising $900

United Nation Financial Services is considering two plans for raising $900,000 to expand operations. Plan A is to borrow at 10%, and plan B is to issue 250,000 shares of common stock at $3.60 per shar...

Q: Write the adjusting entry required at December 31, 2012.

Write the adjusting entry required at December 31, 2012. Sunny Day Company sells $400,000 of 13%, 10-year bonds for 97 on April 1, 2012. The market rate of interest on that day is 13.5%. Interest is p...

Q: Applied Technology, Inc., and Four-Star Catering are asking

Applied Technology, Inc., and Four-Star Catering are asking you to recommend their stock to your clients. Because Applied and Four-Star earn about the same net income and have similar financial positi...

Q: Write the journal entry required at April 1, 2013.

Write the journal entry required at April 1, 2013. Sunny Day Company sells $400,000 of 13%, 10-year bonds for 97 on April 1, 2012. The market rate of interest on that day is 13.5%. Interest is paid ea...

Q: Salt Air Marine experienced these events during the current year.

Salt Air Marine experienced these events during the current year. a. December revenue totaled $150,000; and, in addition, Salt Air collected sales tax of 6%. The tax amount will be sent to the state o...

Q: The following transactions of Smooth Sounds Music Company occurred during 2012 and

The following transactions of Smooth Sounds Music Company occurred during 2012 and 2013: 2012 Mar 3 Purchased a piano (inventory) for $50,000, signing a six-month, 8% note payable. May 31 Borrowed $85...

Q: The board of directors of Radio Plus authorizes the issue of $

The board of directors of Radio Plus authorizes the issue of $7,000,000 of 9%, 25-year bonds payable. The semiannual interest dates are May 31 and November 30. The bonds are issued on May 31, 2012, at...