Q: On July 15, 2021, Cottonwood Industries sold a patent and
On July 15, 2021, Cottonwood Industries sold a patent and equipment to Roquemore Corporation for $750,000 and $325,000, respectively. On the date of the sale, the book value of the patent was $120,000...
See AnswerQ: Appling Enterprises issued 8% bonds with a face amount of $
Appling Enterprises issued 8% bonds with a face amount of $400,000 on January 1, 2021. The bonds sold for $331,364 and mature in 2040 (20 years). For bonds of similar risk and maturity the market yiel...
See AnswerQ: The following transactions relate to bond investments of Livermore Laboratories. The
The following transactions relate to bond investments of Livermore Laboratories. The company’s fiscal year ends on December 31. Livermore uses the straight-line method to determine interest. 2021: Jul...
See AnswerQ: On March 1, 2021, Baddour, Inc., issued 10
On March 1, 2021, Baddour, Inc., issued 10% bonds, dated January 1, with a face amount of $160 million. The bonds were priced at $140 million (plus accrued interest) to yield 12%. Interest is paid sem...
See AnswerQ: At January 1, 2021, Rothschild Chair Company, Inc.,
At January 1, 2021, Rothschild Chair Company, Inc., was indebted to First Lincoln Bank under a $20 million, 10% unsecured note. The note was signed January 1, 2018, and was due December 31, 2024. Annu...
See AnswerQ: On January 1, 2021, Bradley Recreational Products issued $100
On January 1, 2021, Bradley Recreational Products issued $100,000, 9%, four-year bonds. Interest is paid semiannually on June 30 and December 31. The bonds were issued at $96,768 to yield an annual re...
See AnswerQ: On January 1, 2021, Tennessee Harvester Corporation issued debenture bonds
On January 1, 2021, Tennessee Harvester Corporation issued debenture bonds that pay interest semiannually on June 30 and December 31. Portions of the bond amortization schedule appear below: Required:...
See AnswerQ: On February 1, 2021, Cromley Motor Products issued 9%
On February 1, 2021, Cromley Motor Products issued 9% bonds, dated February 1, with a face amount of $80 million. The bonds mature on January 31, 2025 (4 years). The market yield for bonds of similar...
See AnswerQ: On April 1, 2021, Western Communications, Inc., issued
On April 1, 2021, Western Communications, Inc., issued 12% bonds, dated March 1, 2021, with face amount of $30 million. The bonds sold for $29.3 million and mature on February 28, 2024. Interest is pa...
See AnswerQ: McWherter Instruments sold $400 million of 8% bonds, dated
McWherter Instruments sold $400 million of 8% bonds, dated January 1, on January 1, 2021. The bonds mature on December 31, 2040 (20 years). For bonds of similar risk and maturity, the market yield was...
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