Questions from Financial Accounting

Q: Refer to the bond details in Problem 10-4A.

Refer to the bond details in Problem 10-4A. Required 1. Prepare the January 1 journal entry to record the bonds’ issuance. 2. Determine the total bond interest expense to be recognized over the bonds’...

Q: Refer to the bond details in Problem 10-3A.

Refer to the bond details in Problem 10-3A. Required 1. Compute the total bond interest expense over the bonds’ life. 2. Prepare an effective interest amortization table like the one in Exhibit 10B.2...

Q: Ike issues $180,000 of 11%, three-year

Ike issues $180,000 of 11%, three-year bonds dated January 1, 2020, that pay interest semiannually on June 30 and December 31. They are issued at $184,566 when the market rate is 10%. Required 1. Prep...

Q: On January 1, Rogers (lessee) signs a three-

On January 1, Rogers (lessee) signs a three-year lease for machinery that is accounted for as a finance lease. The lease requires three $18,000 lease payments (the first at the beginning of the lease...

Q: Refer to the lease details in Problem 10-11A. Assume

Refer to the lease details in Problem 10-11A. Assume that this lease is classified as an operating lease instead of a finance lease. Required 1. Prepare the January 1 journal entry at the start of the...

Q: Wixi Co. has the following equity investments in FSN, DELL

Wixi Co. has the following equity investments in FSN, DELL, and ATI. (1) Which of these companies are subsidiaries of Wixi? (2) How are individual assets and liabilities of a parent and its subsidiary...

Q: Romero issues $3,400,000 of 10%, 10

Romero issues $3,400,000 of 10%, 10-year bonds dated January 1, 2020, that pay interest semiannually on June 30 and December 31. The bonds are issued at a price of $3,010,000. Required 1. Prepare the...

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

Refer to the bond details in Problem 10-1B, except assume that the bonds are issued at a price of $4,192,932. Required 1. Prepare the January 1 journal entry to record the bonds’ issuance. 2. For each...

Q: Ripkin Company issues 9%, five-year bonds dated January 1

Ripkin Company issues 9%, five-year bonds dated January 1, 2020, with a $320,000 par value. The bonds pay interest on June 30 and December 31 and are issued at a price of $332,988. Their annual market...

Q: Allegiant issues 6%, 20-year bonds with a par value

Allegiant issues 6%, 20-year bonds with a par value of $2,000,000 and semiannual interest payments. In each separate situation, determine whether the bond is issued at par value, at a discount, or at...