Questions from General Accounting

Q: Using the bond details in QS 14-4, confirm that

Using the bond details in QS 14-4, confirm that the bonds’ selling price is approximately correct (within $100). Use the present value tables B.1 and B.3 in Appendix B. Bond Details...

Q: Enviro Company issues 8%, 10-year bonds with a par

Enviro Company issues 8%, 10-year bonds with a par value of $250,000 and semiannual interest payments. On the issue date, the annual market rate for these bonds is 10%, which implies a selling price o...

Q: Sylvestor Company issues 10%, five-year bonds, on December

Sylvestor Company issues 10%, five-year bonds, on December 31, 2014, with a par value of $100,000 and semiannual interest payments. Use the following bond amortization table and prepare journal entrie...

Q: Enviro Company issues 8%, 10-year bonds with a par

Enviro Company issues 8%, 10-year bonds with a par value of $250,000 and semiannual interest payments. On the issue date, the annual market rate for these bonds is 5%, which implies a selling price of...

Q: Why does the Bad Debts Expense account usually not have the same

Why does the Bad Debts Expense account usually not have the same adjusted balance as the Allowance for Doubtful Accounts?

Q: On May 20, 2015, Montero Co. paid $1

On May 20, 2015, Montero Co. paid $1,000,000 to acquire 25,000 common shares (10%) of ORD Corp. as a long-term investment. On August 5, 2016, Montero sold one-half of these shares for $625,000. What v...

Q: Montero Co. holds 100,000 common shares (40%)

Montero Co. holds 100,000 common shares (40%) of ORD Corp. as a long-term investment. ORD Corp. paid a $100,000 dividend on November 1, 2015, and reported a net income of $700,000 for 2015. Prepare Mo...

Q: Complete the following descriptions by filling in the blanks. 1

Complete the following descriptions by filling in the blanks. 1. Equity securities giving an investor significant influence are accounted for using the ______ ______. 2. Available-for-sale debt securi...

Q: Return on total assets can be separated into two important components.

Return on total assets can be separated into two important components. 1. Write the formula to separate the return on total assets into its two basic components. 2. Explain how these components of the...

Q: The Carrefour Group reports the following description of its trading securities (

The Carrefour Group reports the following description of its trading securities (titled “financial assets reported at fair value in the income statement”). Carref...