Q: On January 1, 2012, Morgan Company acquires $300,
On January 1, 2012, Morgan Company acquires $300,000 of Nicklaus, Inc., 9% bonds at a price of $278,384. The interest is payable each December 31, and the bonds mature December 31, 2014. The investmen...
See AnswerQ: Parnevik Company has the following securities in its investment portfolio on December
Parnevik Company has the following securities in its investment portfolio on December 31, 2012 (all securities were purchased in 2012): (1) 3,000 shares of Anderson Co. common stock which cost $58,500...
See AnswerQ: On July 1, 2013, Fontaine Company purchased for cash 40
On July 1, 2013, Fontaine Company purchased for cash 40% of the outstanding capital stock of Knoblett Company. Both Fontaine Company and Knoblett Company have a December 31 year-end. Knoblett Company,...
See AnswerQ: Matthewson Company began operations on January 2, 2012. It employs
Matthewson Company began operations on January 2, 2012. It employs 9 individuals who work 8-hour days and are paid hourly. Each employee earns 10 paid vacation days and 6 paid sick days annually. Vaca...
See AnswerQ: Brooks Corporation sells computers under a 2-year warranty contract that
Brooks Corporation sells computers under a 2-year warranty contract that requires the corporation to replace defective parts and to provide the necessary repair labor. During 2012, the corporation sel...
See AnswerQ: On February 1, 2013, one of the huge storage tanks
On February 1, 2013, one of the huge storage tanks of Viking Manufacturing Company exploded. Windows in houses and other buildings within a one-mile radius of the explosion were severely damaged, and...
See AnswerQ: Sport Pro Magazine sold 12,000 annual subscriptions on August 1
Sport Pro Magazine sold 12,000 annual subscriptions on August 1, 2012, for $18 each. Prepare Sport Pro’s August 1, 2012, journal entry and the December 31, 2012, annual adjusting entry.
See AnswerQ: Kalin Corporation had 2012 net income of $1,000,
Kalin Corporation had 2012 net income of $1,000,000. During 2012, Kalin paid a dividend of $2 per share on 100,000 shares of preferred stock. During 2012, Kalin had outstanding 250,000 shares of commo...
See AnswerQ: Satchel Inc. purchases 10,000 shares of its own previously
Satchel Inc. purchases 10,000 shares of its own previously issued $10 par common stock for $290,000. Assuming the shares are held in the treasury with intent to reissue, what effect does this transact...
See AnswerQ: When should a debt security be classified as held-to-
When should a debt security be classified as held-to- maturity?
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