Q: On January 1, 2017, when the market interest rate was
On January 1, 2017, when the market interest rate was 14%, Luba Corporation issued bonds in the face amount of $500,000 with interest at 12% payable semiannually. The bonds mature on December 31, 2026...
See AnswerQ: Novartis, which files under IFRS, reported the following information in
Novartis, which files under IFRS, reported the following information in its first quarter report for 2013: Impact of introducing revised accounting standard on Employee Benefits in 2013 The Group intr...
See AnswerQ: On January 2, 2017, West Company issued 9% bonds
On January 2, 2017, West Company issued 9% bonds in the amount of $500,000 that mature on December 31, 2026. The bonds were issued for $469,500 to yield 10%. Interest is payable annually on December 3...
See AnswerQ: On February 1, 2015, Davis Corporation issued 12%, $
On February 1, 2015, Davis Corporation issued 12%, $1,000,000 par, 10-year bonds for $1,117,000. Davis reacquired all of these bonds at 102% of par, plus accrued interest, on May 1, 2018, and retired...
See AnswerQ: Webb Company has outstanding a 7% annual, 10-year
Webb Company has outstanding a 7% annual, 10-year, $100,000 face value bond that it had issued several years ago. It originally sold the bond to yield 6% annual interest. Webb uses the effective inter...
See AnswerQ: Brower Corporation owns a manufacturing plant in the country of Oust.
Brower Corporation owns a manufacturing plant in the country of Oust. On December 31, 2017, the plant had a book value of $5,000,000 and an estimated fair value of $8,000,000. Oust’s government has cl...
See AnswerQ: Zero coupon bonds pay no interest—the only cash investors receive
Zero coupon bonds pay no interest—the only cash investors receive is the lump-sum principal payment at maturity. On January 1, 2017, The Ledge Inc. issued $250 million of zero coupon bonds at a market...
See AnswerQ: On January 1, 2017, 3Way Energy issued $200 million
On January 1, 2017, 3Way Energy issued $200 million of 15-year, floating-rate debentures at par value. The debentures pay interest on June 30 and December 31 of each year. The floating interest rate i...
See AnswerQ: Monk Company, a dealer in machinery and equipment, leased equipment
Monk Company, a dealer in machinery and equipment, leased equipment with a 10-year life to Leland Inc. on July 1, 2017. The lease is appropriately accounted for as a sale by Monk and as a purchase by...
See AnswerQ: On December 31, 2017, Day Company leased a new machine
On December 31, 2017, Day Company leased a new machine from Parr with the following pertinent information: Lease term ……………………………………………………………………………... 5 years Annual rental payable on December 31 (...
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