Homework Answers
11.c short term liability
Line of credit is renewed annually.so it is considered as Short term liability
12. B.Cashnflow of $190000
Bonds value after paying of interest effecting financial statement
(200000-10000)=190000
13: B
The market value of interest is more than stated rate of interest due to this bonds will sale at discount to attract customers and at the time of repayment bonds will redeemed at par value.
Add Answer to:
QULOTIUNI u pullit Sa Pearson Company obtained a line of credit from City Bank that is...
QUESTION 25 Occasionally, companies engage in important investing and financing activities which do not affect cash....
QUESTION 25 Occasionally, companies engage in important investing and financing activities which do not affect cash. If the amount of the transaction is significant, how should it be disclosed when financial statements are prepared? 1. In investing activities. 2. In a note to the financial statements or in a supplemental schedule. 3. In both investing and financing activities. 4. In a separate section in the cash flow statement with a corresponding nero balance QUESTION 26 When determining the amount of...
A company has a piece of land that cost $40,000. It was sold during the year...
A company has a piece of land that cost $40,000. It was sold during the year for $50,000. How will this impact the Statement of Cash Flows prepared on the INDIRECT approach: The operating Section will decrease 40,000; The Financing section will increase $50,000. The operating section will show a PLUS adjustment for $10,000; The Investing section will show a $50,000 INFLOW. The operating section will show a MINUS adjustment for $10,000; The Investing section will show an INFLOW of...
A statement of Cash Flows contains the following sections: Cash Flows from Operating Activities Cash Flows...
A statement of Cash Flows contains the following sections: Cash Flows from Operating Activities Cash Flows from Investing Activities Cash Flows from Financing Activities Investing and Financing Activities NOT affecting cash A list of items that appear on the Cash Flows Statement appear below: Using the letters (A-D), indicate in which section(s) of the statement of cash flows (or accompanying schedule) the preceding items would most likely be classified A Investing and Financing Activities NOT affecting cash B. Cash Flows...
Which of the following describes what happens when bonds are issued when the market interest rate...
Which of the following describes what happens when bonds are issued when the market interest rate is less than the stated interest rate? Multiple Choice The bonds are issued at a premium. The bonds are issued at less than their face value. o It raises the effectiv It raises the effective interest rate above the stated rate of interest. o o The bands are su The bonds are issued at a premium and the effective interest rate is higher than...
1. From the standpoint of the issuing company, a disadvantage of using bonds as a means...
1. From the standpoint of the issuing company, a disadvantage of using bonds as a means of long-term financing is that A. bond interest is deductible for tax purposes. B. interest must be paid on a periodic basis regardless of earnings. C. income to stockholders may increase as a result of trading on the equity D. the bondholders do not have voting rights. 2. Bonds that mature at a single specified future date are called A. coupon bonds. B. term...
On January 1, Year 1, Weller Company issued bonds with a $230,000 face value, a stated...
On January 1, Year 1, Weller
Company issued bonds with a $230,000 face value, a stated rate of
interest of 10.00%, and a 10-year term to maturity. Weller uses the
effective interest method to amortize bond discounts and premiums.
The market rate of interest on the date of issuance was 8.00%.
Interest is paid annually on December 31.
QUESTION 9 During Year 1, El Paso Company had the following changes in account balances The Accumulated Depreciation account had a beginning...
Question 6. Mott Company has a line of credit with Bay Bank. Mott can borrow up...
Question 6. Mott Company has a line of credit with Bay Bank. Mott can borrow up to $580,000 at any time over the course of the 2018 calendar year. The following table shows the prime rate expressed as an annual percentage along with the amounts borrowed and repaid during 2018. Mott agreed to pay interest at an annual rate equal to 1 percent above the bank’s prime rate. Funds are borrowed or repaid on the first day of each month....
EA2. LO 13.1 Beluga Inc. issued 10-year bonds with a face value of $100,000 and a...
EA2. LO 13.1 Beluga Inc. issued 10-year bonds with a face value of $100,000 and a stated rate of 3% when the market rate was 4%. Interest was paid annually. The bonds were sold at 87.5. What was the sales price of the bonds? Were they issued at a discount, a premium, or at par? EA3. LO 13.1 Krystian Inc. issued 10-year bonds with a face value of $100,000 and a stated rate of 4% when the market rate was...
1American Precision Industries Inc. issued a corporate bond with a face value of $10,000 at 96....
1American Precision Industries Inc. issued a corporate bond with a face value of $10,000 at 96. Which of the following statements is true? a. The stated rate of interest was higher than the market rate of interest and the bond sold for $10,200. b. The stated rate of interest was higher than the market rate of interest and the bond sold for $10,960. c. The stated rate of interest was lower than the market rate of interest and the bond...
18. An $80,000 bond issue priced at 97 is sold for 19. Term bonds for $78,200 are of shorter duration than serial bonds and pays interest semiannually percent, a face value of $20,000, a int...
18. An $80,000 bond issue priced at 97 is sold for 19. Term bonds for $78,200 are of shorter duration than serial bonds and pays interest semiannually percent, a face value of $20,000, a interest paynmeterest rate of each period intive interest method of amortizing a bond discount, the bond interest expense each period increase recorded for s over the life of the bond. 22. Extra gains and losses are a component of income from operations 23. A gain on...
QUESTION 25 Occasionally, companies engage in important investing and financing activities which do not affect cash. If the amount of the transaction is significant, how should it be disclosed when financial statements are prepared? 1. In investing activities. 2. In a note to the financial statements or in a supplemental schedule. 3. In both investing and financing activities. 4. In a separate section in the cash flow statement with a corresponding nero balance QUESTION 26 When determining the amount of...
A company has a piece of land that cost $40,000. It was sold during the year for $50,000. How will this impact the Statement of Cash Flows prepared on the INDIRECT approach: The operating Section will decrease 40,000; The Financing section will increase $50,000. The operating section will show a PLUS adjustment for $10,000; The Investing section will show a $50,000 INFLOW. The operating section will show a MINUS adjustment for $10,000; The Investing section will show an INFLOW of...
A statement of Cash Flows contains the following sections: Cash Flows from Operating Activities Cash Flows from Investing Activities Cash Flows from Financing Activities Investing and Financing Activities NOT affecting cash A list of items that appear on the Cash Flows Statement appear below: Using the letters (A-D), indicate in which section(s) of the statement of cash flows (or accompanying schedule) the preceding items would most likely be classified A Investing and Financing Activities NOT affecting cash B. Cash Flows...
Which of the following describes what happens when bonds are issued when the market interest rate is less than the stated interest rate? Multiple Choice The bonds are issued at a premium. The bonds are issued at less than their face value. o It raises the effectiv It raises the effective interest rate above the stated rate of interest. o o The bands are su The bonds are issued at a premium and the effective interest rate is higher than...
1. From the standpoint of the issuing company, a disadvantage of using bonds as a means of long-term financing is that A. bond interest is deductible for tax purposes. B. interest must be paid on a periodic basis regardless of earnings. C. income to stockholders may increase as a result of trading on the equity D. the bondholders do not have voting rights. 2. Bonds that mature at a single specified future date are called A. coupon bonds. B. term...
On January 1, Year 1, Weller
Company issued bonds with a $230,000 face value, a stated rate of
interest of 10.00%, and a 10-year term to maturity. Weller uses the
effective interest method to amortize bond discounts and premiums.
The market rate of interest on the date of issuance was 8.00%.
Interest is paid annually on December 31.
QUESTION 9 During Year 1, El Paso Company had the following changes in account balances The Accumulated Depreciation account had a beginning...
EA2. LO 13.1 Beluga Inc. issued 10-year bonds with a face value of $100,000 and a stated rate of 3% when the market rate was 4%. Interest was paid annually. The bonds were sold at 87.5. What was the sales price of the bonds? Were they issued at a discount, a premium, or at par? EA3. LO 13.1 Krystian Inc. issued 10-year bonds with a face value of $100,000 and a stated rate of 4% when the market rate was...
18. An $80,000 bond issue priced at 97 is sold for 19. Term bonds for $78,200 are of shorter duration than serial bonds and pays interest semiannually percent, a face value of $20,000, a interest paynmeterest rate of each period intive interest method of amortizing a bond discount, the bond interest expense each period increase recorded for s over the life of the bond. 22. Extra gains and losses are a component of income from operations 23. A gain on...
Most questions answered within 3 hours.
-
Which of the following is a provision of
NAFTA?
A.
Common accounting rules
B.
Adding new...
asked 6 minutes ago -
Need to do in Python? Can do in Javascript but not in Python
Write a function...
asked 20 minutes ago -
Industry: Telecommunications in India
Here, you need to discuss the sources of the growth pattern
and...
asked 1 hour ago -
Hydrobromic acid
dissolves solid iron according to the followiaung reaction:
Fe(s)+2HBr(aq)→
FeBr2(aq)+ H2(g)
Part A. What...
asked 3 hours ago -
Verify the following vector identity in SPHERICAL
COORDINATES.
div(curl(A)) = 0
asked 5 hours ago -
The work function (Φ) for a metal is 7.50×10-19 J.
What is the longest wavelength (nm)...
asked 5 hours ago -
1. Would the following procedural changes cause the
calculated mass percent Ni2+ ion in Ni(NH3)nCl2 to...
asked 7 hours ago -
1. Why does the voltage of the capacitor vary with frequency?
where does this missing voltage...
asked 8 hours ago -
p p please write each step out clearly
3. A manager of a company is considering...
asked 7 hours ago -
On October 1, Ebony Ernst organized Ernst Consulting; on October
3, the owner contributed $83,540 in...
asked 8 hours ago -
A.)As an electron moves through a region of space, its speed
decreases from 9.60 × 106...
asked 8 hours ago -
In java with the netbeans program do:
Through object programming
Create a class "ContadorP", which is...
asked 8 hours ago