Questions from Financial Accounting

Q: Assume the same facts as in E8-9 but prepare entries

Assume the same facts as in E8-9 but prepare entries using straight-line amortization of bond discount or premium. Data from E8-9: Farley Corporation owns 70 percent of Snowball Enterprises’ stock....

Q: Book Corporation purchased 90,000 shares of Lance Company at underlying

Book Corporation purchased 90,000 shares of Lance Company at underlying book value of $3 per share on June 30, 20X1. On January 1, 20X5, Lance reported its net book value as $400,000 and continued to...

Q: Apple Corporation holds 60 percent of Shortway Publishing Company’s voting shares.

Apple Corporation holds 60 percent of Shortway Publishing Company’s voting shares. Apple issued $500,000 of 10 percent (paid semiannually) bonds with a 10-year maturity on January 1,...

Q: Apple Corporation holds 60 percent of Shortway Publishing Company’s voting shares.

Apple Corporation holds 60 percent of Shortway Publishing Company’s voting shares. Apple issued $500,000 of 10 percent bonds with a 10-year maturity on January 1, 20X2, at 90. On Jan...

Q: Hardcore Mining Company acquired 88 percent of the common stock of Mountain

Hardcore Mining Company acquired 88 percent of the common stock of Mountain Trucking Company on January 1, 20X2, at a cost of $30 per share. On December 31, 20X7, when the book value of Mountain Truck...

Q: Online Enterprises owns 95 percent of Downlink Corporation. On January 1

Online Enterprises owns 95 percent of Downlink Corporation. On January 1, 20X1, Downlink issued $200,000 of five-year bonds at 115. Annual interest of 12 percent is paid semiannually on January 1 and...

Q: Online Enterprises owns 95 percent of Downlink Corporation. On January 1

Online Enterprises owns 95 percent of Downlink Corporation. On January 1, 20X1, Downlink issued $200,000 of five-year bonds at 115. Annual interest of 12 percent is paid semiannually on January 1 and...

Q: Strong Manufacturing Company holds 94 percent ownership of Thorson Farm Products and

Strong Manufacturing Company holds 94 percent ownership of Thorson Farm Products and 68 percent ownership of Kenwood Distributors. Thorson has excess cash at the end of 20X4 and is considering buying...

Q: Hydro Corporation needed to build a new production facility. Because it

Hydro Corporation needed to build a new production facility. Because it already had a relatively high debt ratio, the company decided to establish a joint venture with Rich Corner Bank. This arrangeme...

Q: Bundle Company issued $500,000 par value, 10-

Bundle Company issued $500,000 par value, 10-year bonds at 104 on January 1, 20X3, which Mega Corporation purchased. The coupon rate on the bonds is 11 percent. Interest payments are made semiannually...