Questions from Financial Accounting

Q: On July 1, Year 1, Khatri Industries Inc. issued

On July 1, Year 1, Khatri Industries Inc. issued $18,000,000 of 10-year, 5% bonds at a market (effective) interest rate of 6%, receiving cash of $16,661,102. Interest on the bonds is payable semiannua...

Q: O’Halloran, Inc., produces and sells outdoor equipment. On July

O’Halloran, Inc., produces and sells outdoor equipment. On July 1, Year 1, O’Halloran, Inc., issued $32,000,000 of 6-year, 8% bonds at a market (effective) interest rate of 7%, receiving cash of $33,5...

Q: At the end of the current year, Accounts Receivable has a

At the end of the current year, Accounts Receivable has a balance of $2,450,000, Allowance for Doubtful Accounts has a credit balance of $14,860, and sales for the year total $31,600,000. Bad debt exp...

Q: Rios Co. is a regional insurance company that began operations on

Rios Co. is a regional insurance company that began operations on January 1, 20Y2. The following selected transactions relate to investments acquired by Rios Co., which has a fiscal year ending on Dec...

Q: Forte Inc. produces and sells theater set designs and costumes.

Forte Inc. produces and sells theater set designs and costumes. The company began operations on January 1, 20Y6. The following transactions relate to securities acquired by Forte Inc., which has a fis...

Q: Soto Industries Inc. is an athletic footware company that began operations

Soto Industries Inc. is an athletic footware company that began operations on January 1, 20Y3. The following are bond (held-to-maturity) transactions by Soto Industries Inc., which has a fiscal year e...

Q: O’Brien Industries Inc. is a book publisher. The partial balance

O’Brien Industries Inc. is a book publisher. The partial balance sheets for December 31, 20Y4 and 20Y5 are as follows: The available-for-sale investments at cost and fair value on D...

Q: The comparative balance sheet of Iglesias Inc. for December 31,

The comparative balance sheet of Iglesias Inc. for December 31, 20Y3 and 20Y2, is shown as follows: Additional data obtained from an examination of the accounts in the ledger for 20Y3 are as follows:...

Q: The comparative balance sheet of Orange Angel Enterprises Inc. at December

The comparative balance sheet of Orange Angel Enterprises Inc. at December 31, 20Y8 and 20Y7, is as follows: Additional data obtained from the income statement and from an examination of the accounts...

Q: The comparative balance sheet of Iglesias Inc. for December 31,

The comparative balance sheet of Iglesias Inc. for December 31, 20Y3 and 20Y2, is as follows: The income statement for the year ended December 31, 20Y3, is as follows: Additional data obtained from...