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Prepare the journal entries of Anglar for the bank loan and derivative for 2010.
The Tudor Company acquired $500,000 of Carr Corporation bonds for $487,706.69 on January 1, 2010. The bonds carry an 11% stated interest rate.
Prepare journal entries to record the purchase of the bonds, each interest receipt, and the retirement of the issue on December 31, 2011.
The Mercer Corporation acquired $400,000 of the Park Company's bonds on June 30, 2009 for $409,991.12.
On January 1, 2009 Snow Corporation purchased 20% of the 200,000 outstanding shares of common stock of Garvey Company for $4.00 per share .
Prepare Harper's net cash flow from operating activities section of its 2010 statement of cash flows under the indirect method, assuming the equity investment.
Prepare journal entries to record the purchase of the bonds, each interest payment, the partial sale of the investment on January 1, 2012.
Assume the company records both investments under the equity method and considers that any difference between each purchase price and the respective book value
For the Lion Company show the dividend revenue for 2010, as well as the December 31, 2010 unrealized increase in value of available-for-sale securities.
Discuss the distinction between realized and holding gains and losses on investments in debt and equity securities.
Explain gains trading. Can Cane use gains trading on either portfolio? Does gains trading raise ethical issues?
Explain what factors a company should consider in determining which investments it should classify in each of the three categories.
Explain how Walker reports on its balance sheet and income statement the effects of its investment portfolio of available-for-sale securities for the year.
Explain how Houston reports the income statement effects of the cash dividends received during the year on the securities in the available-for-sale portfolio.
Explain how Victoria accounts for the disposition prior to their maturity of the long-term bonds called by their issuer.
What are share appreciation rights? Why are they advantageous to an employee?
What are the two segments of a corporation's contributed capital and what might be included in each segment?
What are the arguments supporting accounting for the convertible debentures as a single element?
Prepare the notes receivable portion of the Seaver Company's balance sheet on December 31, 2010 and 2011.
Prepare a schedule showing interest income from the long-term receivables and gains recognized on sale of assets that would appear on Linden's income statement
In early January 2013, the bank and the company agree to a loan restructuring because of the financial condition of the company.
What is the effective interest method of amortization and how is it different from and similar to the straightline method of amortization?
Explain how to account for the proceeds from bonds issued with detachable stock purchase warrants.
Identify and discuss the effects on Aubrey Company's 2010 income statement associated with the nonconvertible term bonds.
Discuss the supporting arguments for each of the three theoretical methods of accounting for gains and losses from the early extinguishment of debt.