Questions from Financial Accounting

Q: Milan Company issued bonds with a face value of $200,

Milan Company issued bonds with a face value of $200,000 on January 1, Year 1. The bonds had a 7 percent stated rate of interest and a six-year term. The bonds were issued at face value. Interest is p...

Q: Mack Company plans to invest $50,000 in land that

Mack Company plans to invest $50,000 in land that will produce annual rent revenue equal to 15 percent of the investment, starting on January 1, 2016. The revenue will be collected in cash at the end...

Q: Compute the cash proceeds from bond issues under the following terms.

Compute the cash proceeds from bond issues under the following terms. For each case, indicate whether the bonds sold at a premium or discount: a. Pear, Inc. issued $400,000 of 10-year, 8 percent bonds...

Q: Tom Yuppy, a wealthy investor, exchanged a plot of land

Tom Yuppy, a wealthy investor, exchanged a plot of land that originally cost him $25,000 for 1,000 shares of $10 par common stock issued to him by Leuig Corp. On the same date, Leuig Corp. issued an a...

Q: A sole proprietorship was started on January 1, Year 1,

A sole proprietorship was started on January 1, Year 1, when it received $60,000 cash from Marlin Jones, the owner. During Year 1, the company earned $35,300 in cash revenues and paid $16,200 in cash...

Q: The following information pertains to JAE Corp. at January 1,

The following information pertains to JAE Corp. at January 1, Year 1: JAE Corp. completed the following transactions during Year 1: 1. Issued 3,000 shares of $10 par common stock for $25 per share....

Q: Diaz Company issued bonds with a $180,000 face value

Diaz Company issued bonds with a $180,000 face value on January 1, Year 1. The bonds had a 7 percent stated rate of interest and a five-year term. Interest is paid in cash annually, beginning December...

Q: The Square Foot Grill, Inc. issued $200,000

The Square Foot Grill, Inc. issued $200,000 of 10-year, 6 percent bonds on July 1, Year 1, at 102. Interest is payable in cash semiannually on June 30 and December 31. The straight-line method is used...

Q: On January 1, Year 1, Price Co. issued $

On January 1, Year 1, Price Co. issued $190,000 of five-year, 6 percent bonds at 96½. Interest is payable annually on December 31. The discount is amortized using the straight-line method. Required:...

Q: Stuart Company issued bonds with a $150,000 face value

Stuart Company issued bonds with a $150,000 face value on January 1, Year 1. The bonds had a 6 percent stated rate of interest and a five-year term. Interest is paid in cash annually, beginning Decemb...