ECO444 Bonds Test Bank--No Answers
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ECO444 Bonds Test Bank--No Answers

Course Number: ACC 1236, Spring 2009

College/University: Northeastern

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LONG-TERM LIABILITIES MULTIPLE CHOICE--Conceptual 1. An example of an item which is not a liability is a. dividends payable in stock. b. advances from customers on contracts. c. accrued estimated warranty costs. d. the portion of long-term debt due within one year. The covenants and other terms of the agreement between the issuer of bonds and the lender are set forth in the a. bond indenture. b. bond debenture. c....

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LIABILITIES MULTIPLE LONG-TERM CHOICE--Conceptual 1. An example of an item which is not a liability is a. dividends payable in stock. b. advances from customers on contracts. c. accrued estimated warranty costs. d. the portion of long-term debt due within one year. The covenants and other terms of the agreement between the issuer of bonds and the lender are set forth in the a. bond indenture. b. bond debenture. c. registered bond. d. bond coupon. The term used for bonds that are unsecured as to principal is a. junk bonds. b. debenture bonds. c. indebenture bonds. d. callable bonds. The interest rate written in the terms of the bond indenture is known as the a. coupon rate. b. nominal rate. c. stated rate. d. coupon rate, nominal rate, or stated rate. The rate of interest actually earned by bondholders is called the a. stated rate. b. yield rate. c. effective rate. d. effective, yield, or market rate. Stone, Inc. issued bonds with a maturity amount of $200,000 and a maturity ten years from date of issue. If the bonds were issued at a premium, this indicates that a. the effective yield or market rate of interest exceeded the stated (nominal) rate. b. the nominal rate of interest exceeded the market rate. c. the market and nominal rates coincided. d. no necessary relationship exists between the two rates. If bonds are initially sold at a discount and the straight-line method of amortization is used, interest expense in the earlier years will a. exceed what it would have been had the effective interest method of amortization been used. b. be less than what it would have been had the effective interest method of amortization been used. 2. 3. 4. 5. 6. 7. 14 - 2 Test Bank for Intermediate Accounting, Eleventh Edition c. be the same as what it would have been had the effective interest method of amortization been used. d. be less than the stated (nominal) rate of interest. 8. Under the effective interest method of bond discount or premium amortization, the periodic interest expense is equal to a. the stated (nominal) rate of interest multiplied by the face value of the bonds. b. the market rate of interest multiplied by the face value of the bonds. c. the stated rate multiplied by the beginning-of-period carrying amount of the bonds. d. the market rate multiplied by the beginning-of-period carrying amount of the bonds. When the effective interest method is used to amortize bond premium or discount, the periodic amortization will a. increase if the bonds were issued at a discount. b. decrease if the bonds were issued at a premium. c. increase if the bonds were issued at a premium. d. increase if the bonds were issued at either a discount or a premium. If bonds are issued between interest dates, the entry on the books of the issuing corporation could include a a. debit to Interest Payable. b. credit to Interest Receivable. c. credit to Interest Expense. d. credit to Unearned Interest. When the interest payment dates of a bond are May 1 and November 1, and a bond issue is sold on June 1, the amount of cash received by the issuer will be a. decreased by accrued interest from June 1 to November 1. b. decreased by accrued interest from May 1 to June 1. c. increased by accrued interest from June 1 to November 1. d. increased by accrued interest from May 1 to June 1. 9. 10. 11. Use the following information for questions 12 and 13: Cox Co. issued $100,000 of ten-year, 10% bonds that pay interest semiannually. The bonds are sold to yield 8%. 12. One step in calculating the issue price of the bonds is to multiply the principal by the table value for a. 10 periods and 10% from the present value of 1 table. b. 20 periods and 5% from the present value of 1 table. c. 10 periods and 8% from the present value of 1 table. d. 20 periods and 4% from the present value of 1 table. Another step in calculating the issue price of the bonds is to a. multiply $10,000 by the table value for 10 periods and 10% from the present value of an annuity table. b. multiply $10,000 by the table value for 20 periods and 5% from the present value of an annuity table. c. multiply $10,000 by the table value for 20 periods and 4% from the present value of an annuity table. d. none of these. 13. Long-Term Liabilities 14. Theoretically, the costs of issuing bonds could be a. expensed when incurred. b. reported as a reduction of the bond liability. c. debited to a deferred charge account and amortized over the life of the bonds. d. any of these. 14 - 3 15. The printing costs and legal fees associated with the issuance of bonds should a. be expensed when incurred. b. be reported as a deduction from the face amount of bonds payable. c. be accumulated in a deferred charge account and amortized over the life of the bonds. d. not be reported as an expense until the period the bonds mature or are retired. Treasury bonds should be shown on the balance sheet as a. an asset. b. a deduction from bonds payable issued to arrive at net bonds payable and outstanding. c. a reduction of stockholders' equity. d. both an asset and a liability. An early extinguishment of bonds payable, which were originally issued at a premium, is made by purchase of the bonds between interest dates. At the time of reacquisition a. any costs of issuing the bonds must be amortized up to the purchase date. b. the premium must be amortized up to the purchase date. c. interest must be accrued from the last interest date to the purchase date. d. all of these. The generally accepted method of accounting for gains or losses from the early extinguishment of debt treats any gain or loss as a. an adjustment to the cost basis of the asset obtained by the debt issue. b. an amount that should be considered a cash adjustment to the cost of any other debt issued over the remaining life of the old debt instrument. c. an amount received or paid to obtain a new debt instrument and, as such, should be amortized over the life of the new debt. d. a difference between the reacquisition price and the net carrying amount of the debt which should be recognized in the period of redemption. When a note payable is issued for property, goods, or services, the present value of the note is measured by a. the fair value of the property, goods, or services. b. the market value of the note. c. using an imputed interest rate to discount all future payments on the note. d. any of these. When a note payable is exchanged for property, goods, or services, the stated interest rate is presumed to be fair unless a. no interest rate is stated. b. the stated interest rate is unreasonable. c. the stated face amount of the note is materially different from the current cash sales price for similar items or from current market value of the note. d. any of these. 16. 17. 18. 19. 20. 14 - 4 21. Test Bank for Intermediate Accounting, Eleventh Edition Discount on Notes Payable is charged to interest expense a. equally over the life of the note. b. only in the year the note is issued. c. using the effective interest method. d. only in the year the note matures. Which of the following is an example of "off-balance-sheet financing"? 1. Non-consolidated subsidiary. 2. Special purpose entity. 3. Operating leases. a. 1 b. 2 c. 3 d. All of these are examples of "off-balance-sheet financing." Which of the following must be disclosed relative to long-term debt maturities and sinking fund requirements? a. The present value of future payments for sinking fund requirements and long-term debt maturities during each of the next five years. b. The present value of scheduled interest payments on long-term debt during each of the next five years. c. The amount of scheduled interest payments on long-term debt during each of the next five years. d. The amount of future payments for sinking fund requirements and long-term debt maturities during each of the next five years. Note disclosures for long-term debt generally include all of the following except a. assets pledged as security. b. call provisions and conversion privileges. c. restrictions imposed by the creditor. d. names of specific creditors. The times interest earned ratio is computed by dividing a. net income by interest expense. b. income before taxes by interest expense. c. income before income taxes and interest expense by interest expense. d. net income and interest expense by interest expense. The debt to total assets ratio is computed by dividing a. current liabilities by total assets. b. long-term liabilities by total assets. c. total liabilities by total assets. d. total assets by total liabilities. In a troubled debt restructuring in which the debt is continued with modified terms and the carrying amount of the debt is less than the total future cash flows, a. a loss should be recognized by the debtor. b. a gain should be recognized by the debtor. c. a new effective interest rate must be computed. d. no interest expense or revenue should be recognized in the future. 22. 23. 24. 25. 26. *27. Long-Term Liabilities *28. A troubled debt restructuring will generally result in a a. loss by the debtor and a gain by the creditor. b. loss by both the debtor and the creditor. c. gain by both the debtor and the creditor. d. gain by the debtor and a loss by the creditor. 14 - 5 *29. In a troubled debt restructuring in which the debt is settled by a transfer of assets with a fair market value less than the carrying amount of the debt, the debtor would recognize a. no gain or loss on the settlement. b. a gain on the settlement. c. a loss on the settlement. d. none of these. In a troubled debt restructuring in which the debt is continued with modified terms, a gain should be recognized at the date of restructure, but no interest expense should be recognized over the remaining life of the debt, whenever the a. carrying amount of the pre-restructure debt is less than the total future cash flows. b. carrying amount of the pre-restructure debt is greater than the total future cash flows. c. present value of the pre-restructure debt is less than the present value of the future cash flows. d. present value of the pre-restructure debt is greater than the present value of the future cash flows. In a troubled debt restructuring in which the debt is continued with modified terms and the carrying amount of the debt is less than the total future cash flows, the creditor should a. compute a new effective interest rate. b. not recognize a loss. c. calculate its loss using the historical effective rate of the loan. d. calculate its loss using the current effective rate of the loan. *30. *31. 14 - 6 Test Bank for Intermediate Accounting, Eleventh Edition MULTIPLE CHOICE--Computational Use the following information for questions 32 through 34: On January 1, 2004, Bleeker Co. issued eight-year bonds with a face value of $2,000,000 and a stated interest rate of 6%, payable semiannually on June 30 and December 31. The bonds were sold to yield 8%. Table values are: Present value of 1 for 8 periods at 6% ........................................... Present value of 1 for 8 periods at 8% ........................................... Present value of 1 for 16 periods at 3% ......................................... Present value of 1 for 16 periods at 4% ......................................... Present value of annuity for 8 periods at 6% ................................. Present value of annuity for 8 periods at 8% ................................. Present value of annuity for 16 periods at 3% ............................... Present value of annuity for 16 periods at 4% ............................... 32. The present value of the principal is a. $1,068,000. b. $1,080,000. c. $1,246,000. d. $1,254,000. The present value of the interest is a. $689,640. b. $699,120. c. $745,200. d. $753,660. The issue price of the bonds is a. $1,767,120. b. $1,769,640. c. $1,779,120. d. $1,999,200. On January 1, 2004, Foley Co. sold 12% bonds with a face value of $1,000,000. The bonds mature in five years, and interest is paid semiannually on June 30 and December 31. The bonds were sold for $1,077,000 to yield 10%. Using the effective interest method of amortization, interest expense for 2004 is a. $100,000. b. $107,392. c. $107,700. d. $120,000. On January 2, 2004, a calendar-year corporation sold 8% bonds with a face value of $1,500,000. These bonds mature in five years, and interest is paid semiannually on June 30 and December 31. The bonds were sold for $1,384,000 to yield 10%. Using the effective interest method of computing interest, how much should be charged to interest expense in 2004? a. $120,000. b. $138,400. c. $138,860. d. $150,000. .627 .540 .623 .534 6.210 5.747 12.561 11.652 33. 34. 35. 36. Long-Term Liabilities 37. 14 - 7 The December 31, 2004, balance sheet of Dodge Corporation includes the following items: 9% bonds payable due December 31, 2013 Unamortized premium on bonds payable $1,400,000 37,800 The bonds were issued on December 31, 2003, at 103, with interest payable on July 1 and December 31 of each year. Dodge uses straight-line amortization. On March 1, 2005, Dodge retired $560,000 of these bonds at 98 plus accrued interest. What should Dodge record as a gain on retirement of these bonds? Ignore taxes. a. $26,320. b. $15,120. c. $26,040. d. $28,000. 38. On January 1, 1998, Rodriquez Corporation issued $1,800,000 of 10% ten-year bonds at 103. The bonds are callable at the option of Rodriquez at 105. Rodriquez has recorded amortization of the bond premium on the straight-line method (which was not materially different from the effective interest method). On December 31, 2004, when the fair market value of the bonds was 96, Rodriquez repurchased $400,000 of the bonds in the open market at 96. Rodriquez has recorded interest and amortization for 2004. Ignoring income taxes and assuming that the gain is material, Rodriquez should report this reacquisition as a. a loss of $19,600. b. a gain of $19,600. c. a loss of $24,400. d. a gain of $24,400. 39. The 10% bonds payable of Jacobs Company had a net carrying amount of $1,140,000 on December 31, 2004. The bonds, which had a face value of $1,200,000, were issued at a discount to yield 12%. The amortization of the bond discount was recorded under the effective interest method. Interest was paid on January 1 and July 1 of each year. On July 2, 2005, several years before their maturity, Jacobs retired the bonds at 102. The interest payment on July 1, 2005 was made as scheduled. What is the loss that Jacobs should record on the early retirement of the bonds on July 2, 2005? Ignore taxes. a. $24,000. b. $75,600. c. $67,200. d. $84,000. A corporation an called outstanding bond obligation four years before maturity. At that time there was an unamortized discount of $600,000. To extinguish this debt, the company had to pay a call premium of $200,000. Ignoring income tax considerations, how should these amounts be treated for accounting purposes? a. Amortize $800,000 over four years. b. Charge $800,000 to a loss in the year of extinguishment. c. Charge $200,000 to a loss in the year of extinguishment and amortize $600,000 over four years. d. Either amortize $800,000 over four years or charge $800,000 to a loss immediately, whichever management selects. 40. 14 - 8 41. Test Bank for Intermediate Accounting, Eleventh Edition The 12% bonds payable of Lynn Co. had a carrying amount of $936,000 on December 31, 2004. The bonds, which had a face value of $900,000, were issued at a premium to yield 10%. Lynn uses the effective interest method of amortization. Interest is paid on June 30 and December 31. On June 30, 2005, several years before their maturity, Lynn retired the bonds at 104 plus accrued interest. The loss on retirement, ignoring taxes, is a. $0. b. $7,200. c. $11,160. d. $36,000. On January 1, 2004, Ann Stine loaned $37,565 to Joe Grant. A zero-interest-bearing note (face amount, $50,000) was exchanged solely for cash; no other rights or privileges were exchanged. The note is to be repaid on December 31, 2006. The prevailing rate of interest for a loan of this type is 10%. The present value of $50,000 at 10% for three years is $37,565. What amount of interest income should Ms. Stine recognize in 2004? a. $3,757. b. $5,000. c. $15,000. d. $11,270. On January 1, 2004, Foster Company sold property to Agler Company which originally cost Foster $570,000. There was no established exchange price for this property. Agler gave Foster a $900,000 zero-interest-bearing note payable in three equal annual installments of $300,000 with the first payment due December 31, 2004. The note has no ready market. The prevailing rate of interest for a note of this type is 10%. The present value of a $900,000 note payable in three equal annual installments of $300,000 at a 10% rate of interest is $746,100. What is the amount of interest income that should be recognized by Foster in 2004, using the effective interest method? a. $0. b. $30,000. c. $74,610. d. $90,000. On January 1, 2004, Glenn Company sold property to Jefrey Company. There was no established exchange price for the property, and Jefrey gave Glenn a $1,000,000 zerointerest-bearing note payable in 5 equal annual installments of $200,000, with the first payment due December 31, 2004. The prevailing rate of interest for a note of this type is 9%. The present value of the note at 9% was $721,000 at January 1, 2004. What should be the balance of the Discount on Notes Payable account on the books of Jefrey at December 31, 2004 after adjusting entries are made, assuming that the effective interest method is used? a. $0 b. $214,110 c. $223,200 d. $279,000 42. 43. 44. Long-Term Liabilities 45. Mantle Company's 2004 financial statements contain the following selected data: Income taxes Interest expense Net income $40,000 10,000 60,000 14 - 9 Mantle's times interest earned for 2004 is a. 6 times b. 9 times. c. 10 times. d. 11 times. Use the following information for questions *46 through *48: On December 31, 2003, Queen Co. is in financial difficulty and cannot pay a note due that day. It is a $1,200,000 note with $120,000 accrued interest payable to Trear, Inc. Trear agrees to accept from Queen equipment that has a fair value of $580,000, an original cost of $960,000, and accumulated depreciation of $460,000. Trear also forgives the accrued interest, extends the maturity date to December 31, 2006, reduces the face amount of the note to $500,000, and reduces the interest rate to 6%, with interest payable at the end of each year. *46. Queen should recognize a gain or loss on the transfer of the equipment of a. $0. b. $80,000 gain. c. $120,000 gain. d. $380,000 loss. Queen should recognize a gain on the partial settlement and restructure of the debt of a. $0. b. $30,000. c. $110,000. d. $150,000. Queen should record interest expense for 2006 of a. $0. b. $30,000. c. $60,000. d. $90,000. *47. *48. 14 - 10 Test Bank for Intermediate Accounting, Eleventh Edition MULTIPLE CHOICE--CPA Adapted 49. On July 1, 2004, Risen Co. issued 500 of its 10%, $1,000 bonds at 99 plus accrued interest. The bonds are dated April 1, 2004 and mature on April 1, 2014. Interest is payable semiannually on April 1 and October 1. What amount did Risen receive from the bond issuance? a. $507,500 b. $500,000 c. $495,000 d. $482,500 On January 1, 2004, Lopez Co. issued its 10% bonds in the face amount of $2,000,000, which mature on January 1, 2014. The bonds were issued for $2,270,000 to yield 8%, resulting in bond premium of $270,000. Lopez uses the effective interest method of amortizing bond premium. Interest is payable annually on December 31. At December 31, 2004, Lopez's adjusted unamortized bond premium should be a. $270,000. b. $251,600. c. $243,000. d. $203,000. On July 1, 2002, Moon, Inc. issued 9% bonds in the face amount of $2,000,000, which mature on July 1, 2012. The bonds were issued for $1,878,000 to yield 10%, resulting in a bond discount of $122,000. Moon uses the effective interest method of amortizing bond discount. Interest is payable annually on June 30. At June 30, 2004, Moon's unamortized bond discount should be a. $105,620. b. $102,000. c. $97,600. d. $86,000. On January 1, 2004, Nott Co. sold $2,000,000 of its 10% bonds for $1,770,592 to yield 12%. Interest is payable semiannually on January 1 and July 1. What amount should Nott report as interest expense for the six months ended June 30, 2004? a. $88,532 b. $100,000 c. $106,236 d. $120,000 On January 1, 2004, Harry Co. redeemed its 15-year bonds of $1,500,000 par value for 102. They were originally issued on January 1, 1992 at 98 with a maturity date of January 1, 2007. The bond issue costs relating to this transaction were $90,000. Harry amortizes discounts, premiums, and bond issue costs using the straight-line method. What amount of loss should Harry recognize on the redemption of these bonds (ignore taxes)? a. $54,000 b. $36,000 c. $30,000 d. $0 50. 51. 52. 53. Long-Term Liabilities 54. 14 - 11 On its December 31, 2004 balance sheet, Knorr Corp. reported bonds payable of $3,600,000 and related unamortized bond issue costs of $192,000. The bonds had been issued at par. On January 2, 2005, Knorr retired $1,800,000 of the outstanding bonds at par plus a call premium of $42,000. What amount should Knorr report in its 2005 income statement as loss on extinguishment of debt (ignore taxes)? a. $0 b. $42,000 c. $96,000 d. $138,000 On January 1, 2000, Orear Corp. issued 3,000 of its 10%, $1,000 bonds for $3,120,000. These bonds were to mature on January 1, 2010 but were callable at 101 any time after December 31, 2003. Interest was payable semiannually on July 1 and January 1. On July 1, 2005, Orear called all of the bonds and retired them. Bond premium was amortized on a straight-line basis. Before income taxes, Orear's gain or loss in 2005 on this early extinguishment of debt was a. $90,000 gain. b. $36,000 gain. c. $30,000 loss. d. $24,000 gain. On June 30, 2004, Parks Co. had outstanding 8%, $2,000,000 face amount, 15-year bonds maturing on June 30, 2014. Interest is payable on June 30 and December 31. The unamortized balances in the bond discount and deferred bond issue costs accounts on June 30, 2004 were $70,000 and $20,000, respectively. On June 30, 2004, Parks acquired all of these bonds at 94 and retired them. What net carrying amount should be used in computing gain or loss on this early extinguishment of debt? a. $1,980,000. b. $1,930,000. c. $1,910,000. d. $1,880,000. A ten-year bond was issued in 2002 at a discount with a call provision to retire the bonds. When the bond issuer exercised the call provision on an interest date in 2004, the carrying amount of the bond was less than the call price. The amount of bond liability removed from the accounts in 2004 should have equaled the a. call price. b. call price less unamortized discount. c. face amount less unamortized discount. d. face amount plus unamortized discount. Starr Co. took advantage of market conditions to refund debt. This was the fourth refunding operation carried out by Starr within the last three years. The excess of the carrying amount of the old debt over the amount paid to extinguish it should be reported as a a. gain, net of income taxes. b. loss, net of income taxes. c. part of continuing operations. d. deferred credit to be amortized over the life of the new debt. 55. 56. 57. 58. 14 - 12 Test Bank for Intermediate Accounting, Eleventh Edition *59. Brye Co. is indebted to Dole under a $900,000, 12%, three-year note dated December 31, 2002. Because of Brye's financial difficulties developing in 2004, Brye owed accrued interest of $108,000 on the note at December 31, 2004. Under a troubled debt restructuring, on December 31, 2004, Dole agreed to settle the note and accrued interest for a tract of land having a fair value of $810,000. Brye's acquisition cost of the land is $650,000. Ignoring income taxes, on its 2004 income statement Brye should report as a result of the troubled debt restructuring Gain on Disposal Restructuring Gain a. $358,000 $0 b. $250,000 $0 c. $160,000 $90,000 d. $160,000 $198,000 PROBLEMS Pr. 14-69--Bond discount amortization. On June 1, 2004, Janson Bottle Company sold $1,000,000 in long-term bonds for $877,600. The bonds will mature in 10 years and have a stated interest rate of 8% and a yield rate of 10%. The bonds pay interest annually on May 31 of each year. The bonds are to be accounted for under the effective interest method. Instructions (a) Construct a bond amortization table for this problem to indicate the amount of interest expense and discount amortization at each May 31. Include only the first four years. Make sure all columns and rows are properly labeled. (Round to the nearest dollar.) (b) The sales price of $877,600 was determined from present value tables. Specifically explain how one would determine the price using present value tables. (c) Assuming that interest and discount amortization are recorded each May 31, prepare the adjusting entry to be made on December 31, 2006. (Round to the nearest dollar.) Long-Term Liabilities 14 - 13 Pr. 14-70--Bond interest and discount amortization. Logan Corporation issued $600,000 of 8% bonds on October 1, 2004, due on October 1, 2009. The interest is to be paid twice a year on April 1 and October 1. The bonds were sold to yield 10% effective annual interest. Logan Corporation closes its books annually on December 31. Instructions (a) Complete the following amortization schedule for the dates indicated. (Round all answers to the nearest dollar.) Use the effective interest method. Credit Cash October 1, 2004 April 1, 2005 October 1, 2005 Debit Interest Expense Credit Bond Discount Carrying Amount of Bonds $553,668 (b) Prepare the adjusting entry for December 31, 2005. Use the effective interest method. (c) Compute the interest expense to be reported in the income statement for the year ended December 31, 2005. 14 - 14 Test Bank for Intermediate Accounting, Eleventh Edition Pr. 14-71--Entries for bonds payable. Prepare the necessary journal entries to record the following transactions relating to the long-term issuance of bonds of Sloan Co.: March 1 Issued $600,000 face value Sloan Co. second mortgage, 8% bonds for $654,120, including accrued interest. Interest is payable semiannually on December 1 and June 1 with the bonds maturing 10 years from this past December 1. The bonds are callable at 102. June 1 Paid semiannual interest on Sloan Co. bonds. (Use straight-line amortization of any premium or discount.) December 1 Paid semiannual interest on Sloan Co. bonds and purchased $300,000 face value bonds at the call price in accordance with the provisions of the bond indenture. Pr. 14-72--Entries for bonds payable. Prepare journal entries to record the following transactions relating to long-term bonds of Flynn, Inc. (Show computations.) (a) On June 1, 2004, Flynn, Inc. issued $800,000, 6% bonds for $783,520, which includes accrued interest. Interest is payable semiannually on February 1 and August 1 with the bonds maturing on February 1, 2014. The bonds are callable at 102. (b) On August 1, 2004, Flynn paid interest on the bonds and recorded amortization. Flynn uses straight-line amortization. (c) On February 1, 2006, Flynn paid interest and recorded amortization on all of the bonds, and purchased $480,000 of the bonds at the call price. Assume that a reversing entry was made on January 1, 2006. Long-Term Liabilities 14 - 15 *Pr. 14-73--Accounting for a troubled debt settlement. Elton, Inc., which owes Boston Co. $900,000 in notes payable, is in financial difficulty. To eliminate the debt, Boston agrees to accept from Elton land having a fair market value of $680,000 and a recorded cost of $510,000. Instructions (a) Compute the amount of gain or loss to Elton, Inc. on the transfer (disposition) of the land. (b) Compute the amount of gain or loss to Elton, Inc. on the settlement of the debt. (c) Prepare the journal entry on Elton's books to record the settlement of this debt. (d) Compute the gain or loss to Boston Co. from settlement of its receivable from Elton. (e) Prepare the journal entry on Boston's books to record the settlement of this receivable. 14 - 16 Test Bank for Intermediate Accounting, Eleventh Edition *Solution 14-73 (a) Fair market value of the land Cost of the land to Elton, Inc. Gain on disposition of land Carrying amount of debt Fair market value of the land given Gain on settlement of debt $680,000 510,000 $170,000 $900,000 680,000 $220,000 900,000 510,000 170,000 220,000 (b) (c) Notes Payable ............................................................................. Land ................................................................................. Gain on Disposition of Land ............................................. Gain on Settlement of Debt .............................................. Carrying amount of receivable Land received in settlement Loss on settled debt $900,000 680,000 $220,000 (d) (e) Land ............................................................................................ Allowance for Doubtful Accounts.................................................. Notes Receivable ............................................................. 680,000 220,000 900,000

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Joseph Leonard Green Extra Credit Q1 Test Ch1-3 10/26/08 Directions: Choose the best answer to each of the following questions. 1. If a chemist were studying the chemical structure of the human skull, what branch of chemistry would he be associated with?
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Joseph Leonard Green H P 235 #1, 3-6 1/27/09 1. a) What are monatomic ions? Ions formed from a single atom b) Give three examples of monatomic ions. Na+, K+, F3. Using only the periodic table, write the symbol of the ion most typically formed by each of t
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Joseph Leonard Green H P 236 #30,33,41,42 2/12/09 30. Determine the formula mass of each of the following compounds or ions. a. glucose, C6H12O6 b. calcium acetate, (CaCH3COO)2 c. the ammonium ion, NH4 + d. the chlorate ion, ClO3 a. 180.16 amu b. 99.12 am
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Joseph Leonard Green H P236 #24-28 2/23/09 24. a. NH4 + b. CH3COO c. OH d. CO3 2 e. SO4 2 f. PO4 3 25. a. ammonium b. chlorate c. hydroxide d. sulfate e. nitrate 26. a. NaF b. Na2O c. KSO4 d. MgCl2 27. a. sodium chloride b. potassium fluoride c. calcium s
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Joseph Leonard Green H P 236 #31 ,32, 34 2/25/09 31. a. K = 0.39 mol; NO3 = 0.61 mol N = 0.23 mol; O = 0.77 mol b. Na = 0.32 mol; SO4 = 0.68 mol S = 0.33 mol; O = 0.67 mol c. Ca = 0.54 mol; OH = 0.46 mol O = 0.94 mol; H = 0.06 mol d. NH4 = 0.31 mol; SO3 =
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Joseph Leonard Green H P 271 #27-30 3/17/09 27. Complete and balance the equations for each of the following single-replacement reactions: a. Zn + Pb(NO3)2 b. Al +Hg(CH3COO)2 c. Al + NiSO4 d. Na + H2O _ _ Pb + Zn(NO3)2 3Hg + 2Al(CH3COO)3 3Ni + Al2(SO4)3 2
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Joseph Leonard Green H P112 #1-4 4/30/09 1. Define pressure. The force per unit area on a surface 2. What units are used to express pressure measurements? Pascal, millimeter of mercury, torr, atmosphere 3. What are standard conditions for gas measurements
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Joseph Leonard Green H P306 #1-4 4/30/09 1. Use the kinetic molecular theory to explain each of the following properties of gases: expansion, fluidity, low density, compressibility, and diffusion. Expansion gas particles move rapidly in all directions wit
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Joseph Leonard Green H P327 # 1-10 5/3/09 1. What idea is the kinetic-molecular theory based on? Particles of matter are always in motion. 2. What is an ideal gas? An imaginary gas that perfectly fits all the assumptions of the kineticmolecular theory. 3.
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Joseph Leonard Green H 6/1/09 P477 #1-5 1. Compare and contrast the general properties of acids and bases. Acids taste sour, but bases taste bitter. Both acids and bases change the color of a pH indicator strip and conduct electricity. 2. a. Distinguish b
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Joseph Leonard 9/8/08 Green P26 #1-4 1. What is chemistry? Chemistry is the study of the make up, structure, properties of matter,and the changes that occur 2. What branch of chemistry is most concerned with the study of carbon compounds? Organic 3. What
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Joseph Leonard 9/9/08 Green P26 #5-11 5. a) What is mass? The measurement of the amount of substance something has. b) What is weight? The gravitational pull on an object 6. How does the composition of a pure compound differ from that of a mixture? Every
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Joseph Leonard Green P26 #12-17 9/10/08 12. a) How does a solid differ from a gas? Solids have definite volume and shape. Gases have neither definite volume nor shape. b) How does a liquid differ from a gas? Liquids have definite volume, but no definite s
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Joseph Leonard Green P26 #18-24 9/11/08 18. Suppose element X is a poor conductor of electricity and breaks when hit with a hammer. Element Z is a good conductor of electricity and heat. In what area of the periodic table does each element most likely bel
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Joseph Leonard Green Section 1 review p 31 9/22/08 1. What is the scientific method? Logical approach to solving problems by observing and collecting data, formulating hypotheses, testing hypotheses, testing hypotheses, and formulating theories that are s
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Joseph Leonard Green P42 section 2 review #1-5 9/23/08 1. Why are standards needed for measured quantities? To assure that all units are universal throughout all scientists in the world. 2. Label each of the following measurements by the quantity each rep
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Joseph Leonard Green Section 3 review p57 9/25/08 1. The density of copper is listed as 8.94 g/cm. Two students each make three density determinations of samples of the substance. Student A's results are 7.3 g/mL, 9.4 g/mL, and 8.3 g/mL. Student B's resul
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Joseph Leonard Green P87 #1-3 10/8/08 1. Explain each of the following in terms of Dalton's atomic theory: a. the law of conservation of mass b. the law of definite proportions c. the law of multiple proportions a. states that mass in neither created nor
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Joseph Leonard Green P87 #4-6 10/9/08 4. Describe at least four properties of electrons that were determined based on the experiments of Thomson and Millikan. Electrons have very large charge for their tiny mass, the electron carries a negative electrical
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Joseph Leonard Green P87 #7-11 10/10/08 7. a) What are isotopes? Atoms of the same element that have different masses b) How are isotopes of a particular element alike? They have the same number of protons c) How are they different? They have a different
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Joseph Leonard Green P87 #12-16 10/14/08 12. a) What nuclide is used as the standard in the relative scale for atomic masses? C-12 b) What is its assigned atomic mass? 12 amu 13. What is the atomic mass of an atom if its mass is approximately equal to the
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Joseph Leonard Green P87 #17-20 10/20/08 17. What is the mass in grams of each of the following? a. 1.00 mol Li b. 1.00 mol Al c. 1.00 molar mass Ca a. 6.94 g Li b. 26.98 g Al c. 40.08 g Ca a. 6.022 x 10^23 atoms Ne b. 3.011 x 10^23 atoms Mg a. 1.00 mol N
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Joseph Leonard Green P119 #23,24,25,28,29,30 11/18/08 23. Write the orbital notation for the following elements. a. P b. B c. Na d. C a. b. c. d. 24. Write the electron-configuration notation for an unidentified element that contains the following number
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Joseph Leonard Green H P155 #1-5 11/25/08 1. Describe the contributions made by the following scientists to the development of the periodic table: a. Stanislao Cannizzaro b. Dmitri Mendeleev c. Henry Mosely a. developed a method to measure atomic masses b
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Joseph Leonard Green H P156 #7-11 12/2/08 7. a) What information is provided by the specific block location of an element? The block an element is in tells in what type of orbital the last electron typically falls. b) Identify, by number, the groups locat
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Joseph Leonard Green H P195 #1-5 12/11/08 1. What is a chemical bond? A mutual electrical attraction between the nuclei and the valence electrons of different atoms that binds the atom together. 2. Identify and define the three major types of chemical bon
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Joseph Leonard Green H P195 #6-9 12/12/08 6. What is a molecule? A neutral group of atoms held together by covalent bonds 7. a) What determines bond length? Bond energy b) In general, how are bond energies and bond lengths related? The stronger the bond e
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Joseph Leonard Steven Doyle Green H 11/21/08 Density Lab Purpose: The purpose of this lab was to demonstrate different methods of measuring density both in regular and irregular objects. Data: Regular Shaped Object (Domino) Length 5.0 cm Width 2.5 cm Dept
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Joseph Leonard Dave Aspinall, Alexander Fattell Green H May 8, 2009 Acid Base Titration Lab Purpose: The purpose of this lab is to visually observe a double-replacement reaction by performing an acid base titration with sodium hydroxide (NaOH) and hydroch
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Joseph Leonard Green H Research Paper 12/19/08Glow in the Dark The glowing stars on the roof of a child's room in the night, the flickering of a firefly in the black of night, and the light emitted by a glow stick on Halloween are all made possible by lu
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Joseph Leonard Green H Research paper outline 12/15/08 I. Chemicals known as phosphors are used to make objects glow in the dark. A. Opening sentence B. Definition of luminescence C. Thesis statement Phosphors A. Definition of phosphorescence B. Uses for
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Joseph Leonard 11/10/08 Green H Thesis Statements 1. Chemicals known as phosphors are used to make objects glow in the dark. 2. Contrary to a popular urban legend, Pop Rock candies are not potentially harmful when mixed with cola. 3. Some common food pres
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Answers 1. 2. 3. 4. 5. Changing over time to adapt to needs. Survival of the fittest. Organisms with better traits are able to get food. Traits that give them advantages for survival and reproduction. Survival of organisms w/ favorable traits causes gradu
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Joseph Leonard 10/12/07 p 8,9,10 Q+A Questions # 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 page 8 8 8 8 8 9 9 9 9 9 9 9 9 9 9 9 9 9 9 10 10 10 10 10 10 10 10 10 10 10 paragraph 1 2 3 3 4 1 1 1 1 1 1 1 2 2 2 2 2 2 2 1
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Joseph Leonard # 1. 2. 3. 4. 5. 6. 7. 8. 9. 10. 11. 12. 13. 14. 15. 16. 17. 18. 19. 20. 21. 22. 23. 24. 25. 26. 27. 28. 29. 30. Page 5 5 5 5 6 6 6 6 6 6 6 6 6 6 6 6 6 7 7 7 7 7 7 7 7 7 7 7 7 7 Paragraph 1 1 1 3 1 2 2 2 3 4 4 4 4 5 5 5 5 1 2 2 2 2 3 4 4 4
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Joseph Leonard HTS p46,47,48 Questions 1. What is a computer like-device, which everyone has? 2. What is the most fantastic tool you have? 3. Will your brain sometimes malfunction or stall? 4. What causes the malfunctioning of your brain? 5. Can your brai
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Joseph Leonard P58,59,60 1. What should be done to help one effectively use the memory key system? 2. Is the moon bigger or the sun bigger? 3. Why does the moon appear large? 4. How far is the moon from the Earth? 5. How long does it take a spaceship to r
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Joseph Leonard p37,38 Ex. 1 1. be 2. for 3. before 4. in 5. to 6. into 7. you 8. are 9. you are 10. inform 11. forward 12. see 13. any 14. happy 15. sad 16. are you in? 17. Indian 18. easy 19. I c u b4 u c me. Ex. 2 1. /ey 2. /at 3. /en 4. /is 5. /ose 6.
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Joseph Leonard p39,40 Ex. 4 1. goo 2. doo 3. wanto 4. openo 5. runno 6. walko 7. learno 8. talko 9. jumpo 10. eato 11. /inko 12. no/o 13. /o 14. some/o 15. n4mo 16. co 17. bo 18. r u n Ex. 5 1. b 2. bcame 3. 4 4. b4 5. 2 6. 2ge/er 7. n 8. nvented 9. ncrea
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Joseph Leonard HTS p 40,41,42 1. What do most students think of note taking? 2. Do students retain as much from listening carefully than from taking notes? 3. What should you study before a test? 4. How much do students forget after 15 minutes if they don
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Joseph Leonard p43,44,45 1. Does retyping or copying notes a good way to study? 2. Why can't you put your full attention to typing and studying? 3. What can you do to eliminate having to retype notes? 4. Will writing down the main ideas be enough? 5. What
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Joseph Leonard p49,50,51 1. How many steps are there in the memory-key method? 2. What is the first step? 3. How far should the line be from the left edge? 4. What is the right side for? 5. What is the left side used for? 6. What is the second step? 7. Sh
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Joseph Leonard P61,62,63 1. What is a handicap? 2. What are some widely known handicaps? 3. What effects would blindness have on a person? 4. What positive effects would blindness have on a person? 5. How can blind people help save lives because of their
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Joseph Leonard P64,65,66 1. What did R.A. Vandell prove in his controlled experiment? 2. What did a study by Research Quarterly prove about making basketball free throws? 3. What did the study involve? 4. How many groups of students were there? 5. How oft
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Joseph Leonard 10/15/07 p 11,12,13 Questions and indexed 1. 11 1 What are all living things composed of? 2. 11 1 In what type of organism do cells have specialized tasks? 3. 11 1 How large are cells? 4. 11 1 Are cells larger in larger organisms? 5. 11 2 A
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Joseph Leonard p14,15,16 Questions + Answers Indexed 1. 14 1 Where did a deadly contagious human disease appear in 1976? 2. 14 2 What do all scientific investigations begin with? 3. 14 2 What is the most fundamental question to be answered about the outbr
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Joseph Leonard 9/21/07 p31,32,33 Questions and Indexed 1. 31 1 2. 31 1 3. 31 1 4. 31 1 5. 31 1 6. 31 1 7. 31 2 8. 31 2 9. 31 3 10. 31 3 11. 31 3 12. 31 3 13. 31 4 14. 31 4 15. 32 1 16. 32 1 17. 32 2 18. 32 3 19. 32 3 20. 32 3 21. 32 4 22. 32 4 23. 32 5 24
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Joseph Leonard p34,35,36 Questions and indexed 1. 34 1 2. 34 1 3. 34 1 4. 34 1 5. 34 1 6. 34 - 2 7. 34 2 8. 34 3 9. 34 3 10. 34 3 11. 35 1 12. 35 1 13. 35 1 14. 35 1 15. 35 2 16. 35 2 17. 35 2 18. 35 2 19. 35 - 3 20. 35 3 21. 35 3 22. 36 1 23. 36 1 24. 36
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Joseph Leonard 10/23/07 p37,40,41 Questions and Indexed 1. 37 1 2. 37 1 3. 37 2 4. 37 2 5. 37 2 6. 37 2 7. 40 1 8. 40 1 9. 40 1 10. 40 1 11. 40 1 12. 40 2 13. 40 2 14. 40 2 15. 40 2 16. 40 3 17. 40 3 18. 40 3 19. 41 1 20. 41 2 21. 41 2 22. 41 3 23. 41 3 2
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Joseph Leonard 10/23/07 p42 Questions and Review 1. 42 1 2. 42 2 3. 42 2 4. 42 2 5. 42 2 6. 42 3 7. 42 3 8. 42 3 9. 42 4 10. 42 4 What is the symbol for sodium hydroxide? What is a base? What does alkaline mean? What type of a taste do bases have? How do
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Joseph Leonard 10/28/07 p44 #1-16 1. Explain the relationship between electrons, neutrons, and protons. Electrons are negative, neutrons neutral, and protons positive. 2. What is the difference between an element and a compound? An element is only one typ
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Joseph Leonard 10/29/07 p45 17-25 Critical Thinking 1-5 17. An oxygen atom has six electrons in its outermost energy level. Explain why two oxygen atoms must share four electrons when they form a covalent bond. An atom always wants to have eight electrons
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Joseph Leonard 11/6/07 - p49,50,51 30 questions and indexed 1. 49 1 From where do many of water's biological functions stem? 2. 49 1 What type of bond holds a water molecule together? 3. 49 1 In what type of bond do atoms share electrons? 4. 49 1 Do these