Questions from General Accounting

Q: Riot Company issued $500,000, 15-year,

Riot Company issued $500,000, 15-year, 7% bonds at 96. Instructions: (a) Prepare the journal entry to record the sale of these bonds on January 1, 2014. (b) Suppose the remaining Discount on Bonds Pa...

Q: Assume that the following are independent situations recently reported in the Wall

Assume that the following are independent situations recently reported in the Wall Street Journal. 1. General Electric (GE) 7% bonds, maturing January 28, 2015, were issued at 111.12. 2. Boeing 7% bon...

Q: Romine Company issued $350,000 of 8%, 20-

Romine Company issued $350,000 of 8%, 20-year bonds on January 1, 2014, at face value. Interest is payable annually on January 1. Instructions: Prepare the journal entries to record the following eve...

Q: Suppose McDonald’s 2014 financial statements contain the following selected data (in

Suppose McDonald’s 2014 financial statements contain the following selected data (in millions). Instructions: (a) Compute the following values and provide a brief interpretation of...

Q: RL Photography reported net income of $100,000 for 2014

RL Photography reported net income of $100,000 for 2014. Included in the income statement were depreciation expense of $6,300, patent amortization expense of $4,000, and a gain on disposal of plant as...

Q: Edelman Corporation issued the following statement of cash flows for 2014.

Edelman Corporation issued the following statement of cash flows for 2014. (a) Compute free cash flow for Edelman Corporation. (b) Explain why free cash flow often provides better information than &...

Q: Fusion Corporation has 3,000 shares of 8%, $100

Fusion Corporation has 3,000 shares of 8%, $100 par value preferred stock outstanding at December 31, 2014. At December 31, 2014, the company declared a $105,000 cash dividend. Determine the dividend...

Q: Kosco CD Company has had 4 years of record earnings. Due

Kosco CD Company has had 4 years of record earnings. Due to this success, the market price of its 400,000 shares of $2 par value common stock has increased from $6 per share to $50. During this period...

Q: Fugate Inc. is considering these two alternatives to finance its construction

Fugate Inc. is considering these two alternatives to finance its construction of a new $2 million plant: 1. Issuance of 200,000 shares of common stock at the market price of $10 per share. 2. Issuance...

Q: Foyle Corporation has issued 100,000 shares of $5 par

Foyle Corporation has issued 100,000 shares of $5 par value common stock. It was authorized 500,000 shares. The paid-in capital in excess of par value on the common stock is $263,000. The corporation...