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Calculate the issue price of a $1,500,000 bond issue and prepare the journal entries for the issuance and first years' interest payments (use the effective interest method). Assume the bonds are pai
Write the appropriate audit report, assuming you believe the departure from GAAP is material but not enough to cause you to give an adverse opinion.
On January 1, 2009, an investor paid $291,000 for bonds with a face amount of $300,000. The stated rate of interest is 8% while the current market rate of interest is 10%. Using the effective intere
What is the main reason for the unfavorable total budget variance?
Prepare journal entries that relate to the balance sheet items above with appropriate backup lead schedules for investments, inventory, fixed assets, and capital leases.
The company uses the effective-interest method to allocate unamortized discount or premium. The bonds are classified as available-for-sale. The fair value of the bonds at December 31 of each year is
Gorries Bearing Company makes all sales of industrial bearings under terms of FOB shipping point. The Company usually receives orders for sales approximately one week before shipping inventories to
The high low level of activity last year was 60,000 units of product produced in May and 20,000 units produced in November. Machine maintenance costs were $39,000 in May and $15000 in November. usin
Prepare the stockholders equity section of Cohen Canoes Inc., balance sheet at May 31. The ending balance of retained earnings is $55,000.
Which of the following best describes an opportunity cost?
Windom Co. as lessee records a capital lease of machinery on January 1, 2008. The seven annual lease payments of $350,000 are made at the end of each year. The present value of the lease payments at
ELO corp. purchased a patent for 180000 on sept 1 2006. It had a useful life of 10yrs. Jan 1 2008. ELO spent 44000 to successfully defend the patent in a lawsuit. ELO feels that as of that date, the
Mrs. T. paid $78,400 to purchase 15,000 shares of HF common stock in 2003. This year, HF declared bankruptcy and announced that its stock has no value. What is the tax consequence to Mrs. T. of this
The bonds were sold for $817,860 cash, which provides the holders an annual yield of 8%. Prepare the issuer's journal entry to record the first semiannual interest payment assuming the effective int
A government expects to pay its electric bill relating to its current fiscal year sometime in the following year. An official of the government requests your advice as to whether the anticipated pay
When a corporation has both common stock and preferred stock outstanding:
Mr. Fish wants to build a house in 10 years. He estimates that the total cost will be $170,000. If he can put aside $10,000 at the end of each year, what rate of return must he earn in order to have
Mr. Nailor invests $5,000 in a certificate of deposit at his local bank. He receives annual interest of 8% for 7 years. How much interest will his investment earn during this time period?
Which of the following costs are included in the cost classification that is based on the relationship between total cost and volume of activity?
If the selling price per unit were to drop $2, from $100 to $98, the sales volume were to increase 500 units to 4,500 units per month, and advertising expense were to increase by $1,000:
For the fiscal year ended March 31, 2004, a company reported earnings per share of $3.25 and cash dividends per share of $0.50. During fiscal 2005, the company had a 3 for 2 stock split. In the annu
Fantasy Graphics is a graphics arts design consulting firm. Terri Bierman, its treasurer and vice president of finance, has prepared a classified balance sheet as of January 31, 2008, the end of its