Alexander Company issued $160,000, 12%, 10-year bonds payable at 96 on January 1, 2018. 6. Journalize the issuance of the bonds payable on January 1, 2018. 7. Journalize 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 110....
Hoover Corp., a wholesaler of music equipment, issued $32,700,000 of 20-year, 6% callable bonds on March 1, 20Y2, at their face amount, with interest payable on March 1 and September 1. The fiscal year of the company is the calendar year. Journalize the entries to record the following selected transactions. Refer to the Chart of Accounts for exact wording of...
help A comparative balance sheet and an income statement for Burgess Company are given below. Burgess Company Comparative Balance Sheet (dollars in millions) Ending Balance Beginning Balance $ 43 680 670 1,393 1,545 794 $ 89 624 626 1,339 1,520 663 857 $ 2, 196 751 $2,144 Assets Current assets: Cash and cash equivalents Accounts receivable Inventory Total current assets...
Current Attempt in Progress Bramble Industries, Inc. issued $15,900,000 of 8% debentures on May 1, 2020 and received cash totaling $14,107,479. The bonds pay interest semiannually on May 1 and November 1. The maturity date on these bonds is November 1, 2025. The firm uses the effective interest method of amortizing discounts and premiums. The bonds were sold to yield...
1) Rand Corporation issues 500, 5-year, 6%, $1,000 bonds dated January 1, 2019, at 105. The journal entry to record the issuance will show a A) debit to Cash of $500,000. B) credit to Premium on Bonds Payable for $25,000. C) credit to Bonds Payable for $525,000. D) credit to Cash for $525,000. E) None of the above. 2) Discount...
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...
Accumulated amortization $270,000 Retained earnings 164,700 Cash 16,000 Bonds payable 136,000 Accounts receivable 55,500 Plant and equipment—original cost 740,000 Accounts payable 50,000 Allowance for bad debts 6,800 Common stock, 100,000 shares outstanding 188,000 Inventory 81,000 Preferred stock, 1,000 shares outstanding 75,000 Marketable securities 20,000 Investments 26,000 Notes payable (6 months) 48,000 Balance Sheet Assets Liabilities and Shareholders’ Equity Current...
on- The major classifications of activities reported in the statement of cash flows are operating, investing, and financing. Classify each of the transactions listed below as: 1. Operating activity-add to net income. 2. Operating activity-deduct from net income. port 3. Investing activity. 4. Financing activity. 5. Reported as significant noncash activity The transactions are as follows. Transactions Classifications of Activities...
On January 1, 2020, Sheridan Company sold 12% bonds having a maturity value of $550,000 for $637,838, which provides the bondholders with a 8% yield. The bonds are dated January 1, 2020, and mature January 1, 2025, with interest payable December 31 of each year. Sheridan Company allocates interest and unamortized discount or premium on the effective-interest basis. ✓ Your...
III. Statement of Cash Flows: Comparative balance sheets of Shawnee Inc. as of December 31, 20x8 and 20x7 and information relating to activities for the year 20x8 are presented below: 12/31/x7 Cash Accounts Receivable Merchandise Inventory Long-term Investments Property & Equipment (Cost) Accumulated Depreciation Intangible Assets 12/31/x8 $71,200 69,500 29,000 22,300 99,500 (19,000) 7,500 280,000 $33,700 60,000 24,000 37,500 75,000...