Questions from General Accounting

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: Garcia Company issues 10%, 15-year bonds with a par

Garcia Company issues 10%, 15-year bonds with a par value of $240,000 and semiannual interest payments. On the issue date, the annual market rate for these bonds is 8%, which implies a selling price o...

Q: On July 1, 2015, Advocate Company exercises an $8

On July 1, 2015, Advocate Company exercises an $8,000 call option (plus par value) on its outstanding bonds that have a carrying value of $416,000 and par value of $400,000. The company exercises the...

Q: The return on total assets is the focus of analysts, creditors

The return on total assets is the focus of analysts, creditors, and other users of financial statements. 1. How is the return on total assets computed? 2. What does this important ratio reflect?

Q: Refer to the financial statements and notes of Apple in Appendix A

Refer to the financial statements and notes of Apple in Appendix A. In its presentation of accounts receivable on the balance sheet, how does it title accounts receivable? What does it report for its...

Q: A U.S. company sells a product to a British

A U.S. company sells a product to a British company with the transaction listed in British pounds. On the date of the sale, the transaction total of $14,500 is billed as £10,000, reflecting an exchang...

Q: On March 1, 2015, a U.S. company

On March 1, 2015, a U.S. company made a credit sale requiring payment in 30 days from a Malaysian company, Hamac Sdn. Bhd., in 20,000 Malaysian ringgits. Assuming the exchange rate between Malaysian r...

Q: On April 18, Riley Co. made a short-term

On April 18, Riley Co. made a short-term investment in 300 common shares of XLT Co. The purchase price is $42 per share and the broker’s fee is $250. The intent is to actively manage these shares for...

Q: Prepare Hertog Company’s journal entries to reflect the following transactions for the

Prepare Hertog Company’s journal entries to reflect the following transactions for the current year. May 7 Purchases 200 shares of Kraft stock as a short-term investment in trading securities at a c...

Q: On February 1, 2015, Garzon purchased 6% bonds issued

On February 1, 2015, Garzon purchased 6% bonds issued by PBS Utilities at a cost of $40,000, which is their par value. The bonds pay interest semiannually on July 31 and January 31. For 2015, prepare...