Questions from Intermediate Accounting

Q: The Colson Company issued $300,000 of 10% bonds

The Colson Company issued $300,000 of 10% bonds on January 1, 2014. The bonds are due January 1, 2020, with interest payable each July 1 and January 1. The bonds are issued at face value. Prepare Cols...

Q: What are some forms of off-balance-sheet financing?

What are some forms of off-balance-sheet financing?

Q: Assume the bonds in BE14-2 were issued at 98%.

Assume the bonds in BE14-2 were issued at 98%. Prepare the journal entries for (a) January 1, (b) July1, and (c) December 31. Assume The Colson Company records straight-line amortization semiannua...

Q: Grant Company has had a record-breaking year in terms of

Grant Company has had a record-breaking year in terms of growth in sales and profitability. However, market research indicates that it will experience operating losses in two of its major businesses n...

Q: Assume the bonds in BE14-2 were issued at 103%.

Assume the bonds in BE14-2 were issued at 103%. Prepare the journal entries for (a) January 1, (b) July 1, and (c) December 31. Assume The Colson Company records straight-line amortization semiann...

Q: Distinguish between the following values relative to bonds payable: (

Distinguish between the following values relative to bonds payable: (a) Maturity value. (b) Face value. (c) Market (fair) value. (d) Par value.

Q: Devers Corporation issued $400,000 of 6% bonds on

Devers Corporation issued $400,000 of 6% bonds on May 1, 2014. The bonds were dated January 1, 2014, and mature January 1, 2017, with interest payable July 1 and January 1. The bonds were issued at fa...

Q: On January 1, 2014, JWS Corporation issued $600,

On January 1, 2014, JWS Corporation issued $600,000 of 7% bonds, due in 10 years. The bonds were issued for $559,224, and pay interest each July 1 and January 1. JWS uses the effective-interest meth...

Q: Under what conditions should a contingent liability be recorded?

Under what conditions should a contingent liability be recorded?

Q: Assume the bonds in BE14-6 were issued for $644

Assume the bonds in BE14-6 were issued for $644,636 and the effective-interest rate is 6%. Prepare the company’s journal entries for (a) The January 1 issuance, (b) The July 1 interest payment, and...