Questions from Intermediate Accounting

Q: On July 1, Year 1, Planet Corporation sold Ken Company

On July 1, Year 1, Planet Corporation sold Ken Company 10-year, 8% bonds with a face amount of $500,000 for $520,000. The market rate was 6%. The bonds pay interest semiannually on June 30 and Decembe...

Q: On November 1, Year 1, Dixon Corporation issued $800

On November 1, Year 1, Dixon Corporation issued $800,000 of its 10-year, 8% term bonds dated October 1, Year 1. The bonds were sold to yield 10% with total proceeds of $700,000 plus accrued interest....

Q: Using the information provided in BE14-14, prepare the amortization

Using the information provided in BE14-14, prepare the amortization table for the first 2 years assuming that Stark uses the straight-line method. Data from BE14-14: On January 1, 2018, Stark Incorpo...

Q: On January 1, Year 1, Congo.com issued $

On January 1, Year 1, Congo.com issued $1,000,000 of its 10-year, 9% bonds (interest paid annually) to yield 8%. The present value of $1 at 9% for 10 years is 0.4224, and the present value of an ordin...

Q: Clothes Horse Corp. (CHC) issued $500,000

Clothes Horse Corp. (CHC) issued $500,000 bonds due in 10 years on January 1, Year 1, at a premium for $567,105. On January 1, Year 6, when the carrying value of the bond was $539,940, CHC redeemed th...

Q: Walco Manufacturing Inc. holds 500 convertible bonds from Indwell Semiconductor that

Walco Manufacturing Inc. holds 500 convertible bonds from Indwell Semiconductor that it purchased on January 1, Year 1, for $518,110. The face amount of each bond is $1,000. Each bond is convertible i...

Q: On July 1, Year 1, after recording interest and amortization

On July 1, Year 1, after recording interest and amortization, Wake Company’s shareholders converted $1,000,000 of its 10% convertible bonds into 50,000 shares of its $1 par value common stock. On the...

Q: On December 30, Year 1, Wayne Corporation issued 1,

On December 30, Year 1, Wayne Corporation issued 1,000 of its 10-year, 8%, $1,000 face value bonds with detachable stock warrants at par. Each bond carried a detachable warrant for one share of Wayne’...

Q: Paragon Stores Company’s weekly payroll amounts to $400,000.

Paragon Stores Company’s weekly payroll amounts to $400,000. Paragon is responsible for paying its share of Social Security tax. The company is also responsible for federal and state unemployment taxe...

Q: Boone Corporation’s outstanding capital stock on December 15 consisted of the following

Boone Corporation’s outstanding capital stock on December 15 consisted of the following: • 30,000 shares of 5% cumulative preferred stock, par value $10 per share, fully participating as to dividends...