Questions from Financial Accounting

Q: Colson Company has a line of credit with Federal Bank. Colson

Colson Company has a line of credit with Federal Bank. Colson can borrow up to $800,000 at any time over the course of the Year 1 calendar year. The following table shows the prime rate expressed as a...

Q: Pluto Company issued $300,000 of 20-year,

Pluto Company issued $300,000 of 20-year, 6 percent bonds on January 1, Year 1. The bonds were issued at face value. Interest is payable in cash on December 31 of each year. Pluto immediately invested...

Q: On January 1, Year 1, Hazman Corp. issued $

On January 1, Year 1, Hazman Corp. issued $200,000 of 10year, 6 percent bonds at their face value. Interest is payable on December 31 of each year with the first payment due December 31, Year 1. Requ...

Q: Interest rates in the United States were at historic lows for much

Interest rates in the United States were at historic lows for much of the period from 2013 through 2016. The economy was slowly recovering from the recession of 2008 and 2009, and the Federal Reserve...

Q: Tyler Co. issued $250,000 of 6 percent,

Tyler Co. issued $250,000 of 6 percent, 10-year, callable bonds on January 1, Year 1, at their face value. The call premium was 2 percent (bonds are callable at 102). Interest was payable annually on...

Q: Jupiter Co. issued bonds with a face value of $150

Jupiter Co. issued bonds with a face value of $150,000 on January 1, Year 1. The bonds had a 6 percent stated rate of interest and a five-year term. The bonds were issued at face value. Required: a....

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. Hett, Inc. issued $400,000 of 8-year, 8 percent bonds...

Q: Carroll Corporation was formed when it issued shares of common stock to

Carroll Corporation was formed when it issued shares of common stock to two of its shareholders. Carroll issued 10,000 shares of $5 par common stock to R. Flowler in exchange for $80,000 cash (the iss...

Q: Earles Corporation repurchased 4,000 shares of its own stock for

Earles Corporation repurchased 4,000 shares of its own stock for $30 per share. The stock has a par value of $10 per share. A month later, Earles resold 2,500 shares of the treasury stock for $35 per...

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

The following information pertains to Ming Corp. at January 1, Year 1: Ming Corp. completed the following transactions during Year 1: 1. Issued 2,000 shares of $10 par common stock for $16 per share...