Questions from General Accounting

Q: Duval Co. issues four-year bonds with a $100

Duval Co. issues four-year bonds with a $100,000 par value on June 1, 2015, at a price of $95,948. The annual contract rate is 7%, and interest is paid semiannually on November 30 and May 31. 1. Prepa...

Q: On May 1, 2015, Brussels Enterprises issues bonds dated January

On May 1, 2015, Brussels Enterprises issues bonds dated January 1, 2015, that have a $3,400,000 par value, mature in 20 years, and pay 9% interest semiannually on June 30 and December 31. The bonds ar...

Q: Harbor (lessee) signs a five-year capital lease for

Harbor (lessee) signs a five-year capital lease for office equipment with a $10,000 annual lease payment. The present value of the five annual lease payments is $41,000, based on a 7% interest rate. 1...

Q: General Motors advertised three alternatives for a 25-month lease on

General Motors advertised three alternatives for a 25-month lease on a new Tahoe: (1) zero dollars down and a lease payment of $1,750 per month for 25 months, (2) $5,000 down and $1,500 per month for...

Q: Tano issues bonds with a par value of $180,000

Tano issues bonds with a par value of $180,000 on January 1, 2015. The bonds’ annual contract rate is 8%, and interest is paid semiannually on June 30 and December 31. The bonds matu...

Q: Heineken N.V. reports the following information for its loans

Heineken N.V. reports the following information for its loans and borrowings as of December 31, 2013, including proceeds and repayments for the year ended December 31, 2013 (euros in millions). 1. P...

Q: Bringham Company issues bonds with a par value of $800,

Bringham Company issues bonds with a par value of $800,000 on their stated issue date. The bonds mature in 10 years and pay 6% annual interest in semiannual payments. On the issue date, the annual mar...

Q: Paulson Company issues 6%, four-year bonds, on December

Paulson Company issues 6%, four-year bonds, on December 31, 2015, with a par value of $200,000 and semiannual interest payments. Use the following bond amortization table and prepare journal entries t...

Q: Kramer and Knox began a partnership by investing $60,000

Kramer and Knox began a partnership by investing $60,000 and $80,000, respectively. During its first year, the partnership earned $160,000. Prepare calculations showing how the $160,000 income should...

Q: Dobbs Company issues 5%, two-year bonds, on December

Dobbs Company issues 5%, two-year bonds, on December 31, 2015, with a par value of $200,000 and semiannual interest payments. Use the following bond amortization table and prepare journal entries to r...