Questions from Financial Accounting

Q: Duval Co. issues four-year bonds with a $100

Duval Co. issues four-year bonds with a $100,000 par value on January 1, 2020, at a price of $95,952. The annual contract rate is 7%, and interest is paid semiannually on June 30 and December 31. 1. P...

Q: Wookie Company issues 10%, five-year bonds, on January

Wookie Company issues 10%, five-year bonds, on January 1 of this year, with a par value of $200,000 and semiannual interest payments. Use the following bond amortization table and prepare journal entr...

Q: Quatro Co. issues bonds dated January 1, 2020, with

Quatro Co. issues bonds dated January 1, 2020, with a par value of $400,000. The bonds’ annual contract rate is 13%, and interest is paid semiannually on June 30 and December 31. The bonds mature in t...

Q: Fivio Co. reports the following information. (1) Compute

Fivio Co. reports the following information. (1) Compute return on total assets for the current year and for 1 year ago. (2) Is Fivio more efficient or less efficient in using total assets to produce...

Q: Tyrell Company issued callable bonds with a par value of $10

Tyrell Company issued callable bonds with a par value of $10,000. The call option requires Tyrell to pay a call premium of $500 plus par (or a total of $10,500) to bondholders to retire the bonds. On...

Q: Separately analyze transactions a and b from QS 10-2 by

Separately analyze transactions a and b from QS 10-2 by showing their effects on the accounting equation—specifically, identify the accounts and amounts (including + or −) for each transaction.

Q: On January 1, 2020, Shay Company issues $700,

On January 1, 2020, Shay Company issues $700,000 of 10%, 15-year bonds. The bonds sell for $684,250. Six years later, on January 1, 2026, Shay retires these bonds by buying them on the open market for...

Q: On January 1, 2020, Eagle Company borrows $100,

On January 1, 2020, Eagle Company borrows $100,000 cash by signing a four-year, 7% installment note. The note requires four equal payments of $29,523, consisting of accrued interest and principal on D...

Q: Use the information in Exercise 10-12 to prepare the journal

Use the information in Exercise 10-12 to prepare the journal entries for Eagle to record the note’s issuance and each of the four payments.

Q: Selected accounts from WooHoo Co.’s adjusted trial balance for the

Selected accounts from WooHoo Co.’s adjusted trial balance for the year ended December 31 follow. Prepare the liabilities section of its classified balance sheet.