On March 1, 2021, Stratford Lighting issued 10% bonds, dated March 1, with a face amount of $870,000. The bonds sold for $855,000 and mature on February 28, 2041 (20 years). Interest is paid semiannually on August 31 and February 28. Stratford uses the straight- line method and its fiscal year ends December 31. Required: 1. to 4. Prepare the...
Tru Developers, Inc., sells plots of land for industrial
development. Tru recognizes income for financial reporting purposes
in the year it sells the plots. For some of the plots sold this
year, Tru took the position that it could recognize the income for
tax purposes when the installments are collected. Income that Tru
recognized for financial reporting purposes in 2021...
Sandhill Corporation issued $680,000, 7%, 20-year bonds on January 1, 2020, for $613,236. This price resulted in an effective-interest rate of 8% on the bonds. Interest is payable annually on January 1. Sandhill uses the effective-interest method to amortize bond premium or discount. Prepare the journal entry to record the issuance of the bonds. (Round answers to 0 decimal places,...
The Ralling Company is a national portable building manufacturer. Its Benton plant will become idle on December 31, 2017. Mary Carter, the corporate controller, has been asked to look at three options regarding the plant: (Click the icon to view the options.) Present Value of $1 table Present Value of Annuity of $1 table Future Value of $1 table Future...
How can I get the IS and RE?
Problem 13-02A a Fechter Corporation had the following stockholders' equity accounts on January 1, 2020: Common Stock ($5 par) $500,000, Paid-in Capital in Excess of Par-Common Stock $200,000, and Retained Earnings $100,000. In 2020, the company had the following treasury stock transactions. Mar. 1 Purchased 5,000 shares at $8 per share. une...
Question 19 On January 3, 2020, Ivanhoe Company acquires $520000 of Adam Company’s 10-year, 10% bonds at a price of $552090 to yield 9%. Interest is payable each December 31. The bonds are classified as held-to-maturity. Assuming that Ivanhoe Company uses the effective-interest method, what is the amount of interest revenue that would be recognized in 2021 related to these...
Which of the following statements is true? Select one: O a. The determination of whether a taxpayer is subjust to underpayment payments is made on a quarterly basis. O b. All of these statements are true. O c. For 2020 the due dates for estimated taxes will be April 15, 2020, June 15, 2020, September 15, 2020 and January 15,...
Given the assumptions below, calculate fully diluted shares outstanding using the Treasury Stock Method. ($ in millions, except per share data; shares in millions) Assumptions Current Share Price $40.00 Basic Shares Outstanding 200.0 Options Outstanding 10.0 Weighted Average Exercise Price $26.00
Which one of the following is least likely to encourage managers to act in the best interest of shareholders? Shareholder election of the board of directors, who in turn select managers Threat of a takeover by another firm Linking manager compensation to share value Compensating managers with fixed salaries Compensating managers with stock options
To reduce the incentives of financial institution managers to engage in excessive risk taking regulators might require that bonuses be ________. A) paid immediately B) paid after several years C) paid after several years only if the firm remains in good financial health D) paid in the form of stock options