Questions from Intermediate Accounting

Q: Greenwood Company sold $4,000,000 of 7%

Greenwood Company sold $4,000,000 of 7% first-mortgage bonds on October 1, 2005, at $3,479,683 plus accrued interest. The bonds were dated July 1, 2005; interest payable semiannually on January 1 and...

Q: On June 1, 2012, Chloe Inc. purchased as a

On June 1, 2012, Chloe Inc. purchased as a long-term investment 800 of the $1,000 face value, 9% bonds of Logan Corporation for $731,052. The bonds were purchased to yield 11% interest. Interest is pa...

Q: On May 1, 2010, Glacier Bay Co. acquired $

On May 1, 2010, Glacier Bay Co. acquired $30,000 of Horizon Corp. 8% bonds at 97 plus accrued interest. Interest on bonds is payable semiannually on March 1 and September 1, and bonds mature on Septem...

Q: Why is a corridor amount identified in recognizing gain or loss from

Why is a corridor amount identified in recognizing gain or loss from pension plans?

Q: Fitzgerald Inc. issued $750,000 of 8-year

Fitzgerald Inc. issued $750,000 of 8-year, 11% notes payable dated April 1, 2009. Interest on the notes is payable semiannually on April 1 and October 1. The notes were sold on April 1, 2009, to an un...

Q: In auditing the books for Stiller Corporation as of December 31,

In auditing the books for Stiller Corporation as of December 31, 2013, before the accounts are closed, you find the following long-term investment account balance: Instructions: 1. Give the entries...

Q: Gerona Company authorized the sale of $300,000 of 10

Gerona Company authorized the sale of $300,000 of 10%, 10-year debentures on January 1, 2008. Interest is payable on January 1 and July 1. The entire issue was sold on April 1, 2008, at 103 plus accru...

Q: At the beginning of 2011, Wheel R. Dealer purchased the

At the beginning of 2011, Wheel R. Dealer purchased the net assets of Consolidated Corp. by issuing 10-year, 10% bonds with a face value of $100,000,000, with semiannual interest payments made on June...

Q: Von Surf Co. issued $1,200,000 of

Von Surf Co. issued $1,200,000 of convertible 10-year debentures on July 1, 2012. The debentures provide for 8% interest payable semiannually on January 1 and July 1. The discount in connection with t...

Q: On January 1, 2012, Brewster Company issued 2,000

On January 1, 2012, Brewster Company issued 2,000 of its 5-year, $1,000 face value, 11% bonds dated January 1 at an effective annual interest rate (yield) of 9%. Interest is payable each December 31....