Sandhill Co. sold $3,190,000, 8%, 10-year bonds on January 1, 2022. The bonds were dated January 1, 2022, and pay interest on January 1. The company uses straight-line amortization on bond premiums and discounts. Financial statements are prepared annually. List of Accounts Problem 10-09A Accounts Payable Accounts Receivable Accumulated Depreciation Equipment Accrued Pension Liability Bonds Payable Buildings Cash Common Stock...
The financial statements of Wetaskiwin Ltd., a private company reporting under ASPE, follow: WETASKIWIN LTD. Balance Sheet December 31 Assets 2021 Cash $9,000 Short-term notes receivable 14,000 Accounts receivable 28,000 Inventory 29,000 Property, plant, and equipment 73,000 Accumulated depreciation (30,000) Total assets $123,000 Liabilities and Shareholders' Equity Accounts payable $25,000 Income tax payable 3,000 Notes payable 15,000 Common shares 25,000...
Financial ratios computed for Whittaker Inc. include the following: Current ratio 1.9 to 1 Acid-test ratio 1.4 to 1 Debt/equity ratio 2.0 to 1 Inventory turnover 3.6 times Accounts receivable turnover 5.4 times Times interest earned 4.60 times Gross profit ratio 40 % Return on investment 7.17 % Earnings per share $ 3.40 All sales during the year were made...
On January 1, 2020, Kingbird Company purchased $420,000, 10% bonds of Aguirre Co. for $389,086. The bonds were purchased to yield 12% interest. Interest is payable semiannually on July 1 and January 1. The bonds mature on January 1, 2025. Kingbird Company uses the effective-interest method to amortize discount or premium. On January 1, 2022, Kingbird Company sold the bonds...
Create the “Operating Section”of the statement of cash flows using the indirect method(ONLYTHE OPERATING SECTION). Place your answer on this page(operating section only, indirect method). Statement of Cash Flows - Indirect Review 2025 12.000 125.000 1.000 75.000 300.000 (20.000) 23 000 15,000 14.000 Balance Sheet - Selected Info. Cash Accounts Receivable Inventory Prepaid Insurance Property Plant & Equip Accumulated Depreciation...
Tamarisk Inc. issued $900,000 of 10.25%, 19-year bonds on January 1, 2020, at 102. Interest is payable semi-annually on July 1 and January 1. Tamarisk Inc. uses the effective interest method of amortization for any bond premium or discount. Assume an effective yield of 10.00%. (With a market rate of 10.00%, the issue price would be slightly higher. For simplicity,...
Alexander Company issued $260,000, 4%, 10-year bonds payable at 94 on January 1, 2018. 6. Journalize the issuance of the bonds payable on January 1, 2018. 7. Jounalize the payment of semiannual interest and amortization of the bond discount or premium (using the straight-line amortization method) on July 1, 2018 8. Assume the bonds payable was instead issued at 108....
Instructions On July 1, 20Y1, Danzer Industries Inc. issued $40,000,000 of 10-year, 7% bonds at a market (effective) interest rate of 8%, receiving cash of $37,282,062. Interest on the bonds is payable semiannually on December 31 and June 30. The fiscal year of the company is the calendar year. Required: 1. Journalize the entry to record the amount of cash...
Problems 6-8. Please show all work. Thanks Instructions: Problem is to be worked independently. All parts, excluding part 4, should be neatly handwritten in pencil and all work shown. January 1, 2019: Excel Corporation issued 10 year, 7% bonds with a face value of $1,550,000. The bonds were sold to yield 8%. Interest is payable annually on January 1. 1....
The following additional data were provided: 1. Dividends declared and paid were $35,000. 2. During the year equipment was sold for $17,000 cash. This equipment cost $28,000 originally and had a book value of $17,000 at the time of sale. 3. All depreciation expense is in the operating expenses. 4. All sales and purchases are on account. 5. Accounts payable...