Questions from Financial Accounting

Q: Stanford issues bonds dated January 1, 2020, with a par

Stanford issues bonds dated January 1, 2020, with a par value of $500,000. The bonds’ annual contract rate is 9%, and interest is paid semiannually on June 30 and December 31. The bonds mature in thre...

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: In each separate case, indicate whether the company has a finance

In each separate case, indicate whether the company has a finance lease or an operating lease. 1. The lessor retains title to the asset, and the lease term is 3 years on an asset that has a 10-year us...

Q: On January 1, Harbor (lessee) signs a five-

On January 1, Harbor (lessee) signs a five-year lease for equipment that is accounted for as a finance lease. The lease requires five $10,000 lease payments (the first at the beginning of the lease an...

Q: Ticker Services began operations in Year 1 and holds long-term

Ticker Services began operations in Year 1 and holds long-term investments in available-for-sale debt securities. The year-end cost and fair values for its portfolio of these investments follow. Prepa...

Q: Refer to the bond details in Problem 10-1A, except

Refer to the bond details in Problem 10-1A, except assume that the bonds are issued at a price of $4,895,980. Required 1. Prepare the January 1 journal entry to record the bonds’ issuance. 2. For each...

Q: Ellis Company issues 6.5%, five-year bonds dated

Ellis Company issues 6.5%, five-year bonds dated January 1, 2020, with a $250,000 par value. The bonds pay interest on June 30 and December 31 and are issued at a price of $255,333. The annual market...

Q: On January 1, Renewable Energy issues bonds that have a $

On January 1, Renewable Energy issues bonds that have a $20,000 par value, mature in eight years, and pay 12% interest semiannually on June 30 and December 31. 1. Prepare the journal entry for issuanc...

Q: Legacy issues $325,000 of 5%, four-year

Legacy issues $325,000 of 5%, four-year bonds dated January 1, 2020, that pay interest semiannually on June 30 and December 31. They are issued at $292,181 when the market rate is 8%. Required 1. Prep...

Q: On November 1, 2020, Norwood borrows $200,000

On November 1, 2020, Norwood borrows $200,000 cash from a bank by signing a five-year installment note bearing 8% interest. The note requires equal payments of $50,091 each year on October 31. Require...