Questions from Financial Accounting

Q: Authors Academic Press faces three potential contingency situations, described below.

Authors Academic Press faces three potential contingency situations, described below. Authors’ fiscal year ends December 31, 2021. Required: Determine the appropriate means of reporting each situation...

Q: Selected financial data regarding current assets and current liabilities for Ferris Air

Selected financial data regarding current assets and current liabilities for Ferris Air and Oceanic Airlines are provided as follows: Required: 1. Calculate the current ratio for Ferris Air and Oceani...

Q: On January 1, 2021, Stoops Entertainment purchases a building for

On January 1, 2021, Stoops Entertainment purchases a building for $610,000, paying $110,000 down and borrowing the remaining $500,000, signing a 9%, 15-year mortgage. Installment payments of $5,071.33...

Q: On January 1, 2021, Monster Corporation borrowed $9 million

On January 1, 2021, Monster Corporation borrowed $9 million from a local bank to construct a new highway over the next four years. The loan will be paid back in four equal installments of $2,657,053 o...

Q: Chunky Cheese Pizza has $61 million in bonds payable. The

Chunky Cheese Pizza has $61 million in bonds payable. The bond agreement states that the debt to equity ratio cannot exceed 3.25. Chunky’s total assets are $201 million, and its liabilities other than...

Q: Viking Voyager specializes in the design and production of replica Viking boats

Viking Voyager specializes in the design and production of replica Viking boats. On January 1, 2021, the company issues $3,000,000 of 9% bonds, due in 10 years, with interest payable semiannually on J...

Q: Temptation Vacations issues $60 million in bonds on January 1,

Temptation Vacations issues $60 million in bonds on January 1, 2021, that pay interest semiannually on June 30 and December 31. Portions of the bond amortization schedule appear below: Required: 1. We...

Q: Super Splash issues $1,000,000, 7%

Super Splash issues $1,000,000, 7% bonds on January 1, 2021, that mature in 15 years. The market interest rate for bonds of similar risk and maturity is 6%, and the bonds issue for $1,098,002. Interes...

Q: Christmas Anytime issues $850,000 of 6% bonds,

Christmas Anytime issues $850,000 of 6% bonds, due in 10 years, with interest payable semiannually on June 30 and December 31 each year. Required: Calculate the issue price of a bond and complete the...

Q: Selected financial data for Surf City and Paradise Falls are as follows

Selected financial data for Surf City and Paradise Falls are as follows: Required: 1. Calculate the debt to equity ratio for Surf City and Paradise Falls for the most recent year. Which company has th...