Questions from Financial Accounting

Q: Assume the same facts as in E8-3 but prepare entries

Assume the same facts as in E8-3 but prepare entries using straight-line amortization of bond discount or premium. Data from E8-3: Wood Corporation owns 70 percent of Carter Company’s voting shares....

Q: Amazing Corporation purchased $100,000 par value bonds of its

Amazing Corporation purchased $100,000 par value bonds of its subsidiary, Broadway Company, on December 31, 20X5, from Lemon Corporation for $102,800. The 10-year bonds bear a 9 percent coupon rate, a...

Q: Lake Company reported the following summarized balance sheet data as of December

Lake Company reported the following summarized balance sheet data as of December 31, 20X2: Lake issues 4,000 additional shares of its $10 par value stock to its shareholders as a stock div...

Q: Ballard Corporation purchased 70 percent of Condor Company’s voting shares on January

Ballard Corporation purchased 70 percent of Condor Company’s voting shares on January 1, 20X4, at underlying book value. On that date it also purchased $100,000 par value 12 percent...

Q: Pound Manufacturing Corporation prepared the following balance sheet as of January 1

Pound Manufacturing Corporation prepared the following balance sheet as of January 1, 20X8: The company is considering a 2-for-1 stock split, a stock dividend of 4,000 shares, or a stock divide...

Q: Stable Home Builders Inc. acquired 80 percent of Acme Concrete Works

Stable Home Builders Inc. acquired 80 percent of Acme Concrete Works stock on January 1, 20X3, for $360,000. At that date, the fair value of the noncontrolling interest was $90,000. Acme Concrete&acir...

Q: Bath Corporation acquired 80 percent of Stang Brewing Company’s stock on January

Bath Corporation acquired 80 percent of Stang Brewing Company’s stock on January 1, 20X1, at underlying book value. At that date, the fair value of the noncontrolling interest was eq...

Q: Bath Corporation acquired 80 percent of Stang Brewing Company’s stock on January

Bath Corporation acquired 80 percent of Stang Brewing Company’s stock on January 1, 20X1, at underlying book value. At that date, the fair value of the noncontrolling interest was eq...

Q: Pride Corporation owns 80 percent of Simba Corporation’s outstanding common stock.

Pride Corporation owns 80 percent of Simba Corporation’s outstanding common stock. Simba, in turn, owns 10 percent of Pride’s outstanding common stock. Required: What percent of the dividen...

Q: Bliss Perfume Company issued $300,000 of 10 percent bonds

Bliss Perfume Company issued $300,000 of 10 percent bonds on January 1, 20X2, at 110. The bonds mature 10 years from issue and have semiannual interest payments on January 1 and July 1. Parsons Corpor...