Questions from Financial Accounting

Q: Vatican Co. is considering the following alternative financing plans:

Vatican Co. is considering the following alternative financing plans: Income tax is estimated at 40% of income. Determine the earnings per share of common stock, assuming that income before bond inte...

Q: The first day of the fiscal year, a company issues a

The first day of the fiscal year, a company issues a $3,500,000, 5%, 10-year bond that pays semiannual interest of $87,500 ($3,500,000 x 5% x ½ year), receiving cash of $3,500,000. Journalize the entr...

Q: The first day of the fiscal year, a company issues a

The first day of the fiscal year, a company issues a $700,000, 6%, 10-year bond that pays semiannual interest of $21,000 ($700,000 x 6% x ½ year), receiving cash of $700,000. Journalize the entries to...

Q: Marriott International, Inc., and Hyatt Hotels Corporation are two major

Marriott International, Inc., and Hyatt Hotels Corporation are two major owners and managers of lodging and resort properties in the United States. Abstracted income statement information for the two...

Q: On the first day of the fiscal year, a company issues

On the first day of the fiscal year, a company issues a $1,800,000, 6%, five-year bond that pays semiannual interest of $54,000 ($1,800,000 x 6% x ½), receiving cash of $1,725,151. Journalize the entr...

Q: On the first day of the fiscal year, a company issues

On the first day of the fiscal year, a company issues a $4,200,000, 10%, five-year bond that pays semiannual interest of $210,000 ($4,200,000 x 10% x ½), receiving cash of $4,041,710. Journalize the e...

Q: Using the bond from Practice Exercise 14-3A, journalize the

Using the bond from Practice Exercise 14-3A, journalize the first interest payment and the amortization of the related bond discount. Round to the nearest dollar. Data from Practice Exercise 14-3A: O...

Q: Using the bond from Practice Exercise 14-3B, journalize the

Using the bond from Practice Exercise 14-3B, journalize the first interest payment and the amortization of the related bond discount. Round to the nearest dollar. Data from Exercise 14-3B: On the fir...

Q: On the first day of the fiscal year, a company issues

On the first day of the fiscal year, a company issues an $8,600,000, 11%, five-year bond that pays semiannual interest of $473,000 ($8,600,000 × 11% × ½), receiving cash of $8,932,035. Journalize the...

Q: On January 23, 15,000 shares of Aurora Company’s common

On January 23, 15,000 shares of Aurora Company’s common stock are acquired at a price of $25 per share plus a $150 brokerage commission. On April 12, a $0.50-per-share dividend was received on the Aur...