Questions from Intermediate Accounting


Q: On January 1, 2012, Osborn Company sold 12% bonds

On January 1, 2012, Osborn Company sold 12% bonds having a maturity value of $800,000 for $860,651.79, which provides the bondholders with a 10% yield. The bonds are dated January 1, 2012, and mature...

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Q: Pawnee Inc. has issued three types of debt on January 1

Pawnee Inc. has issued three types of debt on January 1, 2012, the start of the company’s fiscal year. (a) $10 million, 10-year, 13% unsecured bonds, interest payable quarterly. Bonds were priced to y...

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Q: On January 2, 2007, Prebish Corporation issued $1,

On January 2, 2007, Prebish Corporation issued $1,500,000 of 10% bonds at 97 due December 31, 2016. Legal and other costs of $24,000 were incurred in connection with the issue. Interest on the bonds i...

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Q: Robinson, Inc. had outstanding $5,000,000

Robinson, Inc. had outstanding $5,000,000 of 11% bonds (interest payable July 31 and January 31) due in 10 years. On July 1, it issued $7,000,000 of 10%, 15-year bonds (interest payable July 1 and Jan...

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Q: Assume the same information as in IFRS14-5, except that

Assume the same information as in IFRS14-5, except that the bonds were issued at 84.95 to yield 12%. In IFRS14-5 Foreman Company issued $800,000 of 10%, 20-year bonds on January 1, 2012, at 119.792 t...

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Q: On June 30, 2004, Mendenhal Company issued 12% bonds

On June 30, 2004, Mendenhal Company issued 12% bonds with a par value of $600,000 due in 20 years. They were issued at 98 and were callable at 104 at any date after June 30, 2012. Because of lower int...

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Q: Friedman Company had bonds outstanding with a maturity value of $500

Friedman Company had bonds outstanding with a maturity value of $500,000. On April 30, 2013, when these bonds had an unamortized discount of $10,000, they were called in at 104. To pay for these bonds...

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Q: On January 1, 2013, McLean Company makes the two following

On January 1, 2013, McLean Company makes the two following acquisitions. 1. Purchases land having a fair value of $300,000 by issuing a 5-year, zero-interest-bearing promissory note in the face amount...

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Q: Presented below are two independent situations: (a) On

Presented below are two independent situations: (a) On January 1, 2013, Spartan Inc. purchased land that had an assessed value of $390,000 at the time of purchase. A $600,000, zero-interest-bearing no...

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Q: On January 1, 2012, Durdil Co. borrowed and received

On January 1, 2012, Durdil Co. borrowed and received $500,000 from a major customer evidenced by a zero-interest-bearing note due in 3 years. As consideration for the zero-interest-bearing feature, Du...

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