Questions from Financial Accounting

Q: Assume the same facts as in E8-1 and prepare entries

Assume the same facts as in E8-1 and prepare entries using straight-line amortization of bond discount or premium. Data from E8-1: Lamar Corporation owns 60 percent of Humbolt Corporation’s voting s...

Q: Bradley Corporation sold bonds to Flood Company in 20X2 at 90.

Bradley Corporation sold bonds to Flood Company in 20X2 at 90. At the end of 20X4, Century Corporation purchased the bonds from Flood at 105. Bradley then retired the full bond issue on December 31, 2...

Q: Able Company issued $600,000 of 9 percent first mortgage

Able Company issued $600,000 of 9 percent first mortgage bonds on January 1, 20X1, at 103. The bonds mature in 20 years and pay interest semiannually on January 1 and July 1. Prime Corporation purchas...

Q: Assume the same facts as in E8-7 but prepare entries

Assume the same facts as in E8-7 but prepare entries using straight-line amortization of bond discount or premium. Data from E8-7: Able Company issued $600,000 of 9 percent first mortgage bonds on J...

Q: Snow Corporation issued common stock with a par value of $100

Snow Corporation issued common stock with a par value of $100,000 and preferred stock with a par value of $80,000 on January 1, 20X5, when the company was created. Klammer Corporation acquired a contr...

Q: Able Company issued $600,000 of 9 percent first mortgage

Able Company issued $600,000 of 9 percent first mortgage bonds on January 1, 20X1, at 103. The bonds mature in 20 years and pay interest semiannually on January 1 and July 1. Prime Corporation purchas...

Q: Assume the same facts as in E8-8 but prepare entries

Assume the same facts as in E8-8 but prepare entries using straight-line amortization of bond discount or premium. Data from E8-8: Able Company issued $600,000 of 9 percent first mortgage bonds on J...

Q: Nettle Corporation sold $100,000 par value, 10-

Nettle Corporation sold $100,000 par value, 10-year first mortgage bonds to Timberline Corporation on January 1, 20X5. The bonds, which bear a nominal interest rate of 12 percent, pay interest semiann...

Q: Companies sometimes employ accounting practices that are not necessarily in accordance with

Companies sometimes employ accounting practices that are not necessarily in accordance with accounting theory or even current standards. In some cases, companies may be following industry practices ra...

Q: Farley Corporation owns 70 percent of Snowball Enterprises’ stock. On January

Farley Corporation owns 70 percent of Snowball Enterprises’ stock. On January 1, 20X1, Farley sold $1 million par value, 7 percent (paid semiannually), 20-year, first mortgage bonds to Kling Corporati...