Questions from Financial Accounting

Q: Leon Corporation issued $400,000 of 10%, 10-

Leon Corporation issued $400,000 of 10%, 10-year bonds payable on January 1, 2019. The market interest rate at the date of issuance was 8%, and the bonds pay interest semiannually (on June 30 and Dece...

Q: Use the amortization table that you prepared for Leon Corporation’s bonds in

Use the amortization table that you prepared for Leon Corporation’s bonds in S9-8 to answer the following questions: 1. How much cash did Leon Corporation borrow on January 1, 2019? How much cash will...

Q: Glenmore Corporation earned net income of $90,000 during the

Glenmore Corporation earned net income of $90,000 during the year ended December 31, 2018. On December 15, Glenwood declared the annual cash dividend on its 1% preferred stock (13,000 shares with tota...

Q: Alloy Corporation has 25,000 shares of $1.40

Alloy Corporation has 25,000 shares of $1.40 preferred stock outstanding in addition to its common stock. The $1.40 designation means that the preferred stockholders receive an annual cash dividend of...

Q: Hometown Bancshares has 40,000 shares of $3 par value

Hometown Bancshares has 40,000 shares of $3 par value common stock outstanding. Suppose Hometown declares and distributes a 5% stock dividend when the market value of its stock is $15 per share. 1. Jo...

Q: The financial statements of Ridgeline Employment Services, Inc., reported the

The financial statements of Ridgeline Employment Services, Inc., reported the following accounts: Prepare the stockholders’ equity section of Ridgeline’s balance s...

Q: Petrov Gold, Inc., has the following stockholders’ equity:

Petrov Gold, Inc., has the following stockholders’ equity: The company has not paid any preferred dividends for three years, including the current year. Calculate the book value per...

Q: The Blue Heron Shop had the following inventory data: /

The Blue Heron Shop had the following inventory data: Company managers need to know the company’s gross profit percentage and rate of inventory turnover for 2018 under 1. FIFO. 2....

Q: Toyama Corporation’s 2018 financial statements reported the following information, with

Toyama Corporation’s 2018 financial statements reported the following information, with 2017 figures shown for comparison (adapted, and in millions): Use the DuPont model to calcul...

Q: Waketown Marina needs to raise $2.0 million to expand

Waketown Marina needs to raise $2.0 million to expand the company. The company is considering issuing either: ■ $2,000,000 of 6% bonds payable to borrow the money; or ■ 100,000 shares of common stock...