Questions from Financial Accounting

Q: On July 1, Aloha Co. exercises a call option that

On July 1, Aloha Co. exercises a call option that requires Aloha to pay $408,000 for its outstanding bonds that have a carrying value of $416,000 and a par value of $400,000. The company exercises the...

Q: On January 1, MM Co. borrows $340,000

On January 1, MM Co. borrows $340,000 cash from a bank and in return signs an 8% installment note for five annual payments of $85,155 each. 1. Prepare the journal entry to record issuance of the note....

Q: Refer to QS 10-14 and separately analyze transactions 1 and

Refer to QS 10-14 and separately analyze transactions 1 and 2, involving issuance of the note and its first annual payment, by showing their effects on the accounting equation—specifically, identify t...

Q: Which of the following items are normally classified as current liabilities for

Which of the following items are normally classified as current liabilities for a company that has a one-year operating cycle? 1. Portion of long-term note due in 10 months. 2. Note payable maturing i...

Q: Organic Farmers Co-Op has three employees and pays them weekly

Organic Farmers Co-Op has three employees and pays them weekly. Using the withholding bracket table in Exhibit 9A.6, determine each employee’s federal income tax withholding. 1. Maria earns $735 per w...

Q: The following items appear on the balance sheet of a company with

The following items appear on the balance sheet of a company with a one-year operating cycle. Identify each item as a current liability, a long-term liability, or not a liability. 1. Notes payable (du...

Q: 1. On July 15, Piper Co. sold $10

1. On July 15, Piper Co. sold $10,000 of merchandise (costing $5,000) for cash. The sales tax rate is 4%. On August 1, Piper sent the sales tax collected from the sale to the government. Record entrie...

Q: Analyze each separate transaction from Exercise 9-2 by showing its

Analyze each separate transaction from Exercise 9-2 by showing its effects on the accounting equation— specifically, identify the accounts and amounts (including + or –) for each transaction.

Q: Kirkland Company had no trading debt securities prior to this year.

Kirkland Company had no trading debt securities prior to this year. It had the following transactions this year involving trading debt securities. Aug.2 Purchased Verizon bonds for $10,000. Sep.7 Pur...

Q: Sylvestor Systems borrows $110,000 cash on May 15 by

Sylvestor Systems borrows $110,000 cash on May 15 by signing a 60-day, 12%, $110,000 note. 1. On what date does this note mature? 2. Prepare the entries to record (a) issuance of the note and (b) paym...