Questions from Financial Reporting

Q: The following information appeared in the 2002 annual report of Lyondell Petrochemical

The following information appeared in the 2002 annual report of Lyondell Petrochemical Company, a manufacturer of petrochemicals and refined petroleum products such as gasoline, heating oil, jet fuel,...

Q: The following information appeared in the annual reports of Borden, Inc

The following information appeared in the annual reports of Borden, Inc., Exxon Corporation, and Visa Inc. Accruals for environmental matters are recorded when it is probable that a liability has been...

Q: On January 1, 2007, Chain Corporation issued $5 million

On January 1, 2007, Chain Corporation issued $5 million of 7% coupon bonds at par. The bonds mature in 20 years and pay interest semiannually on June 30 and December 31 of each year. On December 31, 2...

Q: On July 1, 2017, McVay Corporation issued $15 million

On July 1, 2017, McVay Corporation issued $15 million of 10-year bonds with an 8% stated interest rate. The bonds pay interest semiannually on June 30 and December 31 of each year. The market rate of...

Q: The following information was taken from the 2012 financial statements of Dentsply

The following information was taken from the 2012 financial statements of Dentsply International, a company that develops, manufactures, and markets medical equipment and supplies for the global denta...

Q: The following information was taken from the financial statements of ALZA Corporation

The following information was taken from the financial statements of ALZA Corporation. On July 28, 2000, ALZA completed a private offering of the 3% Zero Coupon Convertible Subordinated Debentures, wh...

Q: On July 1, 2017, LekTech Corporation issued $20 million

On July 1, 2017, LekTech Corporation issued $20 million of 12%, 20-year bonds. Interest on the bonds is paid semiannually on December 31 and June 30 of each year, and the bonds were issued at a market...

Q: Silverado Inc. buys titanium from a supplier that requires a six

Silverado Inc. buys titanium from a supplier that requires a six-month firm commitment on all purchases. On January 1, 2017, Silverado signs a contract with the supplier to purchase 10,000 pounds of t...

Q: On January 1, 2017, Fleetwood Inc. issued bonds with

On January 1, 2017, Fleetwood Inc. issued bonds with a face amount of $25 million and a stated interest rate of 8%. The bonds mature in 10 years and pay interest semiannually on June 30 and December 3...

Q: On January 1, 2017, Newell Manufacturing purchased a new drill

On January 1, 2017, Newell Manufacturing purchased a new drill press that had a cash purchase price of $6,340. Newell decided instead to pay on an installment basis. The installment contract calls for...