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How does the company present all items related to the serial bonds, except for bond issue costs, in a balance sheet prepared immediately .
Explain the differences that exist in current accounting for original proceeds of the issuance of convertible bonds, and of debt instruments.
When a company exchanges a note for property, goods, or services, what value does it place on the note.
Specify how the company presents all items related to the bonds in a balance sheet prepared immediately after the bond issue is sold.
Does recording the conversion of the 10% convertible bonds into common stock under the market value method affect net income?
You are an accountant for the Virden Company, which has two items of long-term convertible debt on its balance sheet.
Prepare journal entries to record the purchase of the bonds, the interest receipts on April 30, 2010, and October 31, 2010, and the sale of the bonds.
Prepare an investment interest revenue and premium amortization schedule using the effective interest method.
Prepare journal entries to record the purchase of the bonds, the first two interest receipts, and the sale of the bonds.
Prepare the journal entries on December 31, 2010, to record the interest earned and the reclassification.
The company wishes to maintain a minimum cash balance of $3,000 at the end of each month.
What are the three categories of investments in debt and equity securities when there is no significant influence?
Identify the accounting methods a company uses for investments of 20% or more in the voting common stock .
Briefly summarize the accounting for an investment in debt securities held to maturity.
When are investments in bonds held to maturity purchased at a premium? How does the amortization of a premium under the effective interest method.
Briefly describe the two methods available to determine interest revenue and account for premiums and discounts on investments in bonds held to maturity.
How would the reversal of an impairment loss on an available-for-sale equity security be treated under IFRS?
Briefly describe the accounting for an investment in common stock under the equity method.
Why is the cash surrender value of a life insurance policy on which the company is the beneficiary carried as an investment?
Prepare the April 30 journal entry to record the purchase of these available-for-sale securities.
Assume that on June 30, Aggie Corporation received interest on the Smith Corporation bonds, as well as a $1 dividend per share interest on the Bike Company.
Prepare the journal entries of Aggie Corporation to record the sale and adjustment of the unrealized gain or loss.
On January 1, Year 1, the Gatrong Corporation purchased 12%, five-year Fleming Corporation bonds with a face value of $200,000.
Prepare the journal entry on June 30 for Gatrong to record the first interest receipt, using the effective interest method.
On February 1, Year 2, the Razorback Corporation decides to transfer its available-for-sale securities to the trading category.