Questions from Financial Accounting

Q: Team Sports Ltd. is authorized to issue $5,000

Team Sports Ltd. is authorized to issue $5,000,000 of 5%, 10-year bonds payable. On December 31, 2012, when the market interest rate is 6%, the company issues $4,000,000 of the bonds and receives cash...

Q: On June 30, 2012, the market interest rate is 8

On June 30, 2012, the market interest rate is 8%. First Place Sports Ltd. issues $4,000,000 of 9%, 20-year bonds payable at a price of 109.895. The bonds pay interest on June 30 and December 31. First...

Q: Lawrence Co. issued $300,000 of 6% (

Lawrence Co. issued $300,000 of 6% (0.06), 10-year bonds payable on January 1, 2012, when the market interest rate was 7% (0.07). The company pays interest annually at year-end. The issue price of the...

Q: Book value per share of Buffalo Bell’s common stock outstanding at December

Book value per share of Buffalo Bell’s common stock outstanding at December 31, 2012, was a. 137.9. b. $35,147. c. $2.99. d. 20.1.

Q: Footnote 10 of Abercrombie and Fitch Co.’s financial statements for

Footnote 10 of Abercrombie and Fitch Co.’s financial statements for fiscal year 2010 (January 29, 2011) contains the following information: At January 29, 2011, the Company was committed to noncancela...

Q: Companies that operate in different industries may have very different financial ratio

Companies that operate in different industries may have very different financial ratio values. These differences may grow even wider when we compare companies located in different countries. Compare t...

Q: Prime Nation Financial Services is considering two plans for raising $600

Prime Nation Financial Services is considering two plans for raising $600,000 to expand operations. Plan A is to borrow at 6%, and plan B is to issue 125,000 shares of common stock at $4.80 per share....

Q: The accounting records of Off the Wheel Ceramics included the following balances

The accounting records of Off the Wheel Ceramics included the following balances at the end of the period: In the past, Off the Wheel’s warranty expense has been 9% of sales. Durin...

Q: Travis Publishing completed the following transactions for one subscriber during 2012:

Travis Publishing completed the following transactions for one subscriber during 2012: Oct 1 Sold a one-year subscription, collecting cash of $2,100, plus sales tax of 7%. Nov 15 Remitted (paid) the s...

Q: Penske Talent Search has an annual payroll of $190,000

Penske Talent Search has an annual payroll of $190,000. In addition, the company incurs payroll tax expense of 8%. At December 31, Penske owes salaries of $8,000 and FICA and other payroll tax of $750...