Questions from Financial Accounting

Q: Gomez issues $240,000 of 6%, 15-year

Gomez issues $240,000 of 6%, 15-year bonds dated January 1, 2020, that pay interest semiannually on June 30 and December 31. They are issued at $198,494 when the market rate is 8%. Required 1. Prepare...

Q: On October 1, 2020, Gordon borrows $150,000

On October 1, 2020, Gordon borrows $150,000 cash from a bank by signing a three-year installment note bearing 10% interest. The note requires equal payments of $60,316 each year on September 30. Requi...

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

Refer to the bond details in Problem 10-4B. 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 10-3B.

Refer to the bond details in Problem 10-3B. 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: Valdez issues $450,000 of 13%, four-year

Valdez issues $450,000 of 13%, four-year bonds dated January 1, 2020, that pay interest semiannually on June 30 and December 31. They are issued at $493,608 when the market rate is 10%. Required 1. Pr...

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

On January 1, Kwak (lessee) signs a three-year lease for equipment that is accounted for as a finance lease. The lease requires three $14,000 lease payments (the first at the beginning of the lease an...

Q: Use the following information of Prescrip Co. to prepare a calendar

Use the following information of Prescrip Co. to prepare a calendar year-end statement of comprehensive income.

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

Refer to the lease details in Problem 10-11B. 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: Santana Rey has consulted with her local banker and is considering financing

Santana Rey has consulted with her local banker and is considering financing an expansion of her business by obtaining a long-term bank loan. Selected account balances at March 31, 2021, for Business...

Q: Use Apple’s financial statements in Appendix A to answer the following.

Use Apple’s financial statements in Appendix A to answer the following. 1. Identify Apple’s long-term debt as reported on its balance sheet at (a) September 29, 2018, and (b) September 30, 2017. 2. Ca...