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Details about a company's liabilities should be included in the notes to the financial statements O...
A bond issued at a discount typically has a market price that decreases toward maturity value....
A bond issued at a discount typically has a market price that decreases toward maturity value. O 0 True False Which type of lease will not increase a company's assets or liabilities? O A. a lease in which title is transferred to the lessee at the end of the lease term OB. a finance lease O c. an operating lease OD. the present value of lease payments is 90% or more of the market value of the leased asset Under...
How does a company account for the difference between interest expense and the cash payment of interest when bond...
How does a company account for the difference between interest expense and the cash payment of interest when bonds are issued at less than their face value? O A. The difference is accounted for using Bonds Payable OB. The difference is accounted for using Amortization of Bond Discount OC. The difference is accounted for using Amortization of Bond Premium. O D. In this situation the cash payment of interest will exceed interest expense The carrying amount of bonds issued at...
Which of the following statements about installment notes payable is correct? The amount of loan reduction...
Which of the following statements about installment notes payable is correct? The amount of loan reduction included in each payment decreases as more payments are made. The interest expense on the installment note decreases as more payments are made. The amount of interest decreases over the life of the note payable, but the amount of the loan balance stays the same. The amount of amount of interest included in the payment is not related to the amount owed on the...
1. Charger Company's most recent balance sheet reports total assets of $28,652,000, total liabilities of $16,302,000...
1. Charger Company's most recent balance sheet reports total assets of $28,652,000, total liabilities of $16,302,000 and total equity of $12,350,000. The debt to equity ratio for the period is (rounded to two decimals): Multiple Choice 0.43 1.32 1.76 0.57 0.7 2. On July 1, Shady Creek Resort borrowed $370,000 cash by signing a 10-year, 9.5% installment note requiring equal payments each June 30 of $58,928. What amount of interest expense will be included in the first annual payment? Multiple...
A company's financial records at the end of the year included the following amounts: Cash Accounts...
A company's financial records at the end of the year included the following amounts: Cash Accounts Receivable Supplies Accounts Payable Notes Payable Retained Earnings, beginning of year Common Stock Service Revenue Wages Expense Advertising Expense Rent Expense $70,900 28,900 4,900 10,900 5,450 17,900 49,000 47, 150 8,900 5,900 10,900 What is the amount of total stockholders' equity that would be reported on the Balance Sheet at the end of the year? Multiple Choice O $104,700. $66.900 O $88,350. O O...
Balance Sheet Assets Liabilities Current Liabilities Current Assets 49 36 20 Accounts payable Notes payable/short term...
Balance Sheet Assets Liabilities Current Liabilities Current Assets 49 36 20 Accounts payable Notes payable/short term debt Total current liabilities ====== Cash Accounts receivable Inventories Total current assets 5 15 41 84 Long-Term Assets Long-Term Liabilities O A. - $1 million OB. $6 million OC. $43 million OD. - $6 million Long-Term Assets Long-Term Liabilities Net property, plant, and equipment Total long-term assets 126 126 Long-term debt Total long term abilities 135 135 Total liabilities Stockholders' Equity Total liabilities and...
Amortization of Discount Stacy Company issued five-year, 10% bonds with a face value of $10,000 on...
Amortization of Discount
Stacy Company issued five-year, 10% bonds with a face value of
$10,000 on January 1, 2017. Interest is paid annually on December
31. The market rate of interest on this date is 12%, and Stacy
Company receives proceeds of $9,279 on the bond issuance.
Required:
Refer to the tables above for present value factors.
1. Prepare a five-year table to amortize the
discount using the effective interest method.
Note: Round the 12/31/18 interest expense and discount amortized...
Selected data from Kamal Company's financial statements is as follows: In $000's 2017 2016 Current liabilities...
Selected data from Kamal Company's financial statements is as follows: In $000's 2017 2016 Current liabilities $ 5,130 $ 5,202 Long-term debt 1,419 1,322 Stockholders' equity 12,632 11,166 Interest and principal payments 300 400 Net income 2,430 2,280 Interest expense 196 172 Income taxes 1,837 1,524 Dividends paid 750 750 Kamal Company's times interest earned ratio for 2017 Select one: A. shows an increase in the company's ability to make its interest payments. B. increased, which indicates the company's creditors...
straight line effective interest On October 1st, 2018, Franklin Corporation issued $2 million of 13.5% bonds for...
straight line
effective interest
On October 1st, 2018, Franklin Corporation issued $2 million of 13.5% bonds for $1,970,143.36. The bonds are due in 4 years, and pay interest semiannually on March 31 and September 30. Assume an effective yield rate of 14% a.Use the spreadsheet included in the module section to prepare a bond interest expense and discount amortization schedule using the straight-line method. b.Use the same spreadsheet to prepare a bond interest expense and discount amortization schedule using the...
if $691,000 of 8% bonds are issued at 94, what is the amount of cash recieved...
if
$691,000 of 8% bonds are issued at 94, what is the amount of cash
recieved from the sale ?
Calculator If $691,000 of 8% bonds are issued at 94, what is the amount of cash received from the sale? Select the correct answer. $635,720 $649,540 $746,280 $691,000 Assignment Main.do?invokerStake AssignmentSessionLocator Binprogressa false Calculator A corporation issues for cash $1,000,000 of 10%, 20-year bonds, interest payable annually, at a time when the market rate of interest is 12%. The straight-line...
A bond issued at a discount typically has a market price that decreases toward maturity value. O 0 True False Which type of lease will not increase a company's assets or liabilities? O A. a lease in which title is transferred to the lessee at the end of the lease term OB. a finance lease O c. an operating lease OD. the present value of lease payments is 90% or more of the market value of the leased asset Under...
How does a company account for the difference between interest expense and the cash payment of interest when bonds are issued at less than their face value? O A. The difference is accounted for using Bonds Payable OB. The difference is accounted for using Amortization of Bond Discount OC. The difference is accounted for using Amortization of Bond Premium. O D. In this situation the cash payment of interest will exceed interest expense The carrying amount of bonds issued at...
A company's financial records at the end of the year included the following amounts: Cash Accounts Receivable Supplies Accounts Payable Notes Payable Retained Earnings, beginning of year Common Stock Service Revenue Wages Expense Advertising Expense Rent Expense $70,900 28,900 4,900 10,900 5,450 17,900 49,000 47, 150 8,900 5,900 10,900 What is the amount of total stockholders' equity that would be reported on the Balance Sheet at the end of the year? Multiple Choice O $104,700. $66.900 O $88,350. O O...
Balance Sheet Assets Liabilities Current Liabilities Current Assets 49 36 20 Accounts payable Notes payable/short term debt Total current liabilities ====== Cash Accounts receivable Inventories Total current assets 5 15 41 84 Long-Term Assets Long-Term Liabilities O A. - $1 million OB. $6 million OC. $43 million OD. - $6 million Long-Term Assets Long-Term Liabilities Net property, plant, and equipment Total long-term assets 126 126 Long-term debt Total long term abilities 135 135 Total liabilities Stockholders' Equity Total liabilities and...
Amortization of Discount
Stacy Company issued five-year, 10% bonds with a face value of
$10,000 on January 1, 2017. Interest is paid annually on December
31. The market rate of interest on this date is 12%, and Stacy
Company receives proceeds of $9,279 on the bond issuance.
Required:
Refer to the tables above for present value factors.
1. Prepare a five-year table to amortize the
discount using the effective interest method.
Note: Round the 12/31/18 interest expense and discount amortized...
straight line
effective interest
On October 1st, 2018, Franklin Corporation issued $2 million of 13.5% bonds for $1,970,143.36. The bonds are due in 4 years, and pay interest semiannually on March 31 and September 30. Assume an effective yield rate of 14% a.Use the spreadsheet included in the module section to prepare a bond interest expense and discount amortization schedule using the straight-line method. b.Use the same spreadsheet to prepare a bond interest expense and discount amortization schedule using the...
if
$691,000 of 8% bonds are issued at 94, what is the amount of cash
recieved from the sale ?
Calculator If $691,000 of 8% bonds are issued at 94, what is the amount of cash received from the sale? Select the correct answer. $635,720 $649,540 $746,280 $691,000 Assignment Main.do?invokerStake AssignmentSessionLocator Binprogressa false Calculator A corporation issues for cash $1,000,000 of 10%, 20-year bonds, interest payable annually, at a time when the market rate of interest is 12%. The straight-line...
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