Questions from Financial Reporting

Q: Raytheon Company’s 2018 Form 10-K states that sales to the

Raytheon Company’s 2018 Form 10-K states that sales to the U.S. government comprise 68% of its 2018 total net sales and sales to foreign governments through the U.S. government comprise 13% of its 201...

Q: The following events and transactions related to David Company occurred after the

The following events and transactions related to David Company occurred after the balance sheet date of December 31, 20X1, and before the financial statements were issued in 20X2. None of the items is...

Q: Akers Company sold bonds on July 1, 20X1, with a

Akers Company sold bonds on July 1, 20X1, with a face value of $100,000. These bonds aredue in 10 years. The stated annual interest rate is 6% per year, payable semiannually on June 30and December 31....

Q: On July 1, 20X1, Mirage Company issued $250 million

On July 1, 20X1, Mirage Company issued $250 million of bonds with an 8% coupon interestrate. The bonds mature in 10 years and pay interest semiannually on June 30 and December 31of each year. The mark...

Q: On January 1, 20X1, Tusk Company issued $300 million

On January 1, 20X1, Tusk Company issued $300 million of bonds with a 6% coupon interestrate. The bonds mature in 10 years and pay interest annually on December 31 of each year. Themarket rate of inter...

Q: By July 1, 20X2, the market yield on the Akers

By July 1, 20X2, the market yield on the Akers Company bonds described in E12-1 had risento 10%. Required: What was the bonds’ market price on July 1, 20X2?

Q: On January 1, 20X1, when the market interest rate was

On January 1, 20X1, when the market interest rate was 14%, Luba Corporation issued 10-yearbonds in the face amount of $500,000 with interest at 12% payable semiannually. The bondsmature on December 31...

Q: On January 2, 20X1, West Company issued 9%, 10

On January 2, 20X1, West Company issued 9%, 10-year bonds in the amount of $500,000 thatmature on December 31, 20X9. The bonds were issued for $469,500 to yield 10%. Interest ispayable annually on Dec...

Q: On February 1, 20X1, Davis Corporation issued 12%, $

On February 1, 20X1, 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, 20X3, and retired...

Q: 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 hadissued several years ago. It originally sold the bond to yield 6% annual interest. Webb uses theeffective interes...