Questions from Financial Accounting

Q: At the beginning of last year, Bratworth Corporation purchased a piece

At the beginning of last year, Bratworth Corporation purchased a piece of heavy equipment for $99,000. The equipment has a life of five years or 100,000 hours. The estimated residual value is $9,000....

Q: Madison Corporation acquired a machine for $27,000 and has

Madison Corporation acquired a machine for $27,000 and has recorded depreciation for two years using the straight-line method over a five-year life and $8,000 residual value. At the start of the third...

Q: Refer to the data in E6-37B. Compute all ratio

Refer to the data in E6-37B. Compute all ratio values to answer the following questions: ■ Which company has the highest and which company has the lowest gross profit percentage? ■ Which company has...

Q: The carrying value on bonds equals Bonds Payable a. minus

The carrying value on bonds equals Bonds Payable a. minus Premium on Bonds Payable. b. plus Discount on Bonds Payable. c. plus Premium on Bonds Payable. d. minus Discount on Bonds Payable. e. both a a...

Q: Cheyenne Company sells $400,000 of 14%, 10-

Cheyenne Company sells $400,000 of 14%, 10-year bonds for 92.613 on April 1, 2018. The market rate of interest on that day is 15.5%. Interest is paid each year on April 1. The entry to record the sa...

Q: Cheyenne Company sells $400,000 of 14%, 10-

Cheyenne Company sells $400,000 of 14%, 10-year bonds for 92.613 on April 1, 2018. The market rate of interest on that day is 15.5%. Interest is paid each year on April 1.Cheyenne Company uses the str...

Q: Mcdonaugh Corporation issued $250,000 of 5%, 10-

Mcdonaugh Corporation issued $250,000 of 5%, 10-year bonds payable on January 1, 2019. The market interest rate when the bonds were issued was 8%. Interest is paid semiannually on January 1 and July 1...

Q: Using the facts in the preceding question, Mcdonaugh’s entry to record

Using the facts in the preceding question, Mcdonaugh’s entry to record the interest expense on July 1, 2019, will include a a. debit to Premium on Bonds Payable. b. credit to Discount on Bonds Payable...

Q: Maridell’s Fashions has a debt that has been properly reported as a

Maridell’s Fashions has a debt that has been properly reported as a long-term liability up to the present year (2018). Some of this debt comes due in 2018. If Maridell’s Fashions continues to report t...

Q: On January 1, 2020, Fergus Corporation issued $800,

On January 1, 2020, Fergus Corporation issued $800,000, 10%, 5-year bonds. The bond interest is payable on January 1 and July 1. The bonds sold for $864,887. The market rate of interest when the bonds...