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Prepare a lease amortization schedule for the two-year term of the lease and appropriate entries for Manufacturers Southern from the beginning of the lease.
At the end of 2015, Majors Furniture Company failed to accrue $61,000 of interest expense that accrued during the last five months of 2015 on bonds payable.
Prepare an amortization schedule that determines interest at the effective rate each period.
Prepare the appropriate journal entries to record the first semiannual interest payment for both issues.
Determine which accounts are incorrect as a result of these errors at January 1, 2016, before any adjustments.
Prepare the journal entry on January 1, 2016, for Amber Mining and Milling's purchase of the lathe.
Prepare the journal entry on January 1, 2016, for Truax Corporation's sale of the lathe.
Prepare the journal entry for American Food Services' purchase of the machine on January 1, 2016.
NCI was experiencing severe financial difficulties and negotiated a restructuring of the terms of the debt agreement.
Determine the price of the bonds at January 1, 2016, and prepare the journal entry to record their issuance by Instaform.
What amount(s) related to the bonds would Baddour report in its balance sheet at September 30, 2016?
What is the total effective interest expense recorded over the term to maturity?
Prepare the journal entries to record interest expense on June 30, 2018, by each of the two approaches.
Prepare the journal entries by both firms to record all subsequent events related to the bonds through January 31, 2018.
What amount of interest expense related to the bonds will LHD report in its income statement for the year ending December 31, 2016?
The June 30, 2012, annual report of Microsoft Corporation reports zero-coupon convertible notes that the company issued in June of 2010.
Prepare the journal entry to adjust the bonds to their fair value for presentation in the December 31, 2016, balance sheet.
By how much will Appling's comprehensive income be increased or decreased by the bonds (ignoring taxes) in the March 31 quarterly financial statements?
Some financial instruments can be considered compound instruments in that they have features of both debt and shareholders' equity.
Does Macy's obtain more financing through notes, bonds, or commercial paper? Are required debt payments increasing or decreasing over time?
How is interest determined in a capital lease transaction? How does the approach compare to other forms of debt?
The present value of the minimum lease payments for both the lessor and lessee is $5.2 million.
What are executory costs? How are they accounted for by the lessee in a capital lease when paid by the lessee?
What circumstances are contingent rentals included or excluded from minimum lease payments?
When are initial direct costs recognized in an operating lease? In a direct financing lease? In a sales-type lease? Why?