ch14int3
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ch14int3

Course Number: ACC 4301, Fall 2010

College/University: Houston Downtown

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21.An example of an item which is not a liability is dividends payable in stock. 22. The covenants and other terms of the agreement between the issuer of bonds and the lender are set forth in the bond indenture. The term used for bonds that are unsecured as to principal is debenture bonds. Bonds for which the owners' names are not registered with the issuing corporation are called bearer bonds. Bonds that pay no...

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example 21.An of an item which is not a liability is dividends payable in stock. 22. The covenants and other terms of the agreement between the issuer of bonds and the lender are set forth in the bond indenture. The term used for bonds that are unsecured as to principal is debenture bonds. Bonds for which the owners' names are not registered with the issuing corporation are called bearer bonds. Bonds that pay no interest unless the issuing company is profitable are called income bonds. If bonds are issued initially at a premium and the effective-interest method of amortization is used, interest expense in the earlier years will be greater than if the straight-line method were used. The interest rate written in the terms of the bond indenture is known as the coupon rate, nominal rate, or stated rate. The rate of interest actually earned by bondholders is called the effective, yield, or market rate. 23. P 24. S 25. S 26. 27. 28. Use the following information for questions 29 and 30: Fox Co. issued $100,000 of ten-year, 10% bonds that pay interest semiannually. The bonds are sold to yield 8%. 29. One step in calculating the issue price of the bonds is to multiply the principal by the table value for 20 periods and 4% from the present value of 1 table. Reich, 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 the nominal rate of interest exceeded the market rate. If bonds are initially sold at a discount and the straight-line method of amortization is used, interest expense in the earlier years will exceed what it would have been had the effective-interest method of amortization been used. Under the effective-interest method of bond discount or premium amortization, the periodic interest expense is equal to the market rate multiplied by the beginning-of-period carrying amount of the bonds. 31. 32. 33. 34. When the effective-interest method is used to amortize bond premium or discount, the periodic amortization will 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 credit to Interest Expense. 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 increased by accrued interest from May 1 to June 1. Theoretically, the costs of issuing bonds could be expensed when incurred. reported as a reduction of the bond liability. debited to a deferred charge account and amortized over the life of the bonds. The printing costs and legal fees associated with the issuance of bonds should be accumulated in a deferred charge account and amortized over the life of the bonds. Treasury bonds should be shown on the balance sheet as a deduction from bonds payable issued to arrive at net bonds payable and outstanding. 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 any costs of issuing the bonds must be amortized up to the purchase date. the premium must be amortized up to the purchase date. interest must be accrued from the last interest date to the purchase date. The generally accepted method of accounting for gains or losses from the early extinguishment of debt treats any gain or loss as a difference between the reacquisition price and the net carrying amount of the debt which should be recognized in the period of redemption. "In-substance defeasance" is a term used to refer to an arrangement whereby a company provides for the future repayment of a long-term debt by placing purchased securities in an irrevocable trust. A corporation borrowed money from a bank to build a building. The long-term note signed by the corporation is secured by a mortgage that pledges title to the building as security for the loan. The corporation is to pay the bank $80,000 each year for 10 years to repay the loan. Which of the following relationships can you expect to apply to the situation? The amount of interest expense will decrease each period the loan is outstanding, while the portion of the annual payment applied to the loan principal will increase each period. 35. 36. 37. 38. 39. 40. 41. P 42. P 43. S 44. A debt instrument with no ready market is exchanged for property whose fair market value is currently indeterminable. When such a transaction takes place the present value of the debt instrument must be approximated using an imputed interest rate. When a note payable is issued for property, goods, or services, the present value of the note is measured by the fair value of the property, goods, or services. the market value of the note. using an imputed interest rate to discount all future payments on the note. When a note payable is exchanged for property, goods, or services, the stated interest rate is presumed to be fair unless no interest rate is stated. the stated interest rate is unreasonable. 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. Discount on Notes Payable is charged to interest expense using the effective-interest method. Which of the following is an example of "off-balance-sheet financing"? 1. Non-consolidated subsidiary. 2. Special purpose entity. 3. Operating leases. All of these are examples of "off-balance-sheet financing." When a business enterprise enters into what is referred to as off-balance-sheet financing, the company can enhance the quality of its financial position and perhaps permit credit to be obtained more readily and at less cost. Long-term debt that matures within one year and is to be converted into stock should be reported as noncurrent and accompanied with a note explaining the method to be used in its liquidation. Which of the following must be disclosed relative to long-term debt maturities and sinking fund requirements? The amount of future payments for sinking fund requirements and longterm debt maturities during each of the next five years. Note disclosures for long-term debt generally include all of the following except names of specific creditors. The times interest earned ratio is computed by dividing income before income taxes and interest expense by interest expense. The debt to total assets ratio is computed by dividing total liabilities by total assets. 45. 46. 47. 48. S 49. S 50. 51. 52. 53. 54. *55. 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 new effective-interest rate must be computed. A troubled debt restructuring will generally result in a gain by the debtor and a loss by the creditor. 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 gain on the settlement. 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 carrying amount of the pre-restructure debt is greater than the total 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 calculate its loss using the historical effective rate of the loan. *56. *57. *58. *59. Use the following information for questions 60 through 62: On January 1, 2010, Ellison Co. issued eight-year bonds with a face value of $1,000,000 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%.............................. 60. The present value of the principal is $534,000. $1,000,000 .534 = $534,000 The present value of the interest is $349,560. ($1,000,000 .03) 11.652 = $349,560 The issue price of the bonds is $883,560. $534,000 + $349,560 = $883,560 .627 .540 .623 .534 6.210 5.747 12.561 11.652 61. 62. 63. Downing Company issues $5,000,000, 6%, 5-year bonds dated January 1, 2010 on January 1, 2010. The bonds pay interest semiannually on June 30 and December 31. The bonds are issued to yield 5%. What are the proceeds from the bond issue? Present value of a single sum for 5 periods Present value of a single sum for 10 periods Present value of an annuity for 5 periods Present value of an annuity for 10 periods 2.5% .88385 .78120 4.64583 8.75206 3.0% .86261 .74409 4.57971 8.53020 5.0% 6.0% .78353 .74726 .61391 .55839 4.32948 4.21236 7.72173 7.36009 $5,218,809 ($5,000,000 .78120) + ($150,000 8.75206) = $5,218,809 64. Feller Company issues $20,000,000 of 10-year, 9% bonds on March 1, 2010 at 97 plus accrued interest. The bonds are dated January 1, 2010, and pay interest on June 30 and December 31. What is the total cash received on the issue date? $19,700,000 ($20,000,000 .97) + ($1,800,000 2/12) = $19,700,000 65.Everhart Company issues $10,000,000, 6%, 5-year bonds dated January 1, 2010 on January 1, 2010. The bonds pays interest semiannually on June 30 and December 31. The bonds are issued to yield 5%. What are the proceeds from the bond issue? Present value of a single sum for 5 periods Present value of a single sum for 10 periods Present value of an annuity for 5 periods Present value of an annuity for 10 periods 2.5% .88385 .78120 4.64583 8.75206 3.0% .86261 .74409 4.57971 8.53020 5.0% 6.0% .78353 .74726 .61391 .55839 4.32948 4.21236 7.72173 7.36009 $10,437,618 ($10,000,000 .78120) + ($300,000 8.75206) = $10,437,618 66. Farmer Company issues $10,000,000 of 10-year, 9% bonds on March 1, 2010 at 97 plus accrued interest. The bonds are dated January 1, 2010, and pay interest on June 30 and December 31. What is the total cash received on the issue date? $9,850,000 ($10,000,000 .97) + ($900,000 2/12) = $9,850,000 A company issues $20,000,000, 7.8%, 20-year bonds to yield 8% on January 1, 2010. Interest is paid on June 30 and December 31. The proceeds from the bonds are $19,604,145. Using effective-interest amortization, how much interest expense will be recognized in 2010? $1,568,498 ($19,604,145 .04) + ($19,608,310 .04) = $1,568,498 67. 68. A company issues $20,000,000, 7.8%, 20-year bonds to yield 8% on January 1, 2010. Interest is paid on June 30 and December 31. The proceeds from the bonds are $19,604,145. Using effective-interest amortization, what will the carrying value of the bonds be on the December 31, 2010 balance sheet? $19,612,643 $19,604,145 + [($19,604,145 .04) $780,000]+ [$19,608,310 .04) $780,000] = $19,612,643. A company issues $20,000,000, 7.8%, 20-year bonds to yield 8% on January 1, 2009. Interest is paid on June 30 and December 31. The proceeds from the bonds are $19,604,145. Using straight-line amortization, what is the carrying value of the bonds on December 31, 2011? $19,663,523 $19,604,145 + ($395,855 3/20) = $19,663,523 A company issues $20,000,000, 7.8%, 20-year bonds to yield 8% on January 1, 2010. Interest is paid on June 30 and December 31. The proceeds from the bonds are $19,604,145. What is interest expense for 2011, using straight-line amortization? $1,579,793 ($20,000,000 .078) + ($395,855 20) = $1,579,793 A company issues $5,000,000, 7.8%, 20-year bonds to yield 8% on January 1, 2010. Interest is paid on June 30 and December 31. The proceeds from the bonds are $4,901,036. Using effective-interest amortization, how much interest expense will be recognized in 2010? $392,124 ($4,901,036 .04) + ($4,902,077 .04) = $392,124 69. 70. 71. A company issues $5,000,000, 7.8%, 20-year bonds to yield 8% on January 1, 2010. Interest is paid on June 30 and December 31. The proceeds from the bonds are $4,901,036. Using effective-interest amortization, what will the carrying value of the bonds be on the December 31, 2010 balance sheet? $4,903,160 $4,901,036 + [($4,901,036 .04) $195,000] + [($4,902,077 .04) $195,000] = $4,903,160 73. A company issues $5,000,000, 7.8%, 20-year bonds to yield 8% on January 1, 2009. Interest is paid on June 30 and December 31. The proceeds from the bonds are $4,901,036. Using straight-line amortization, what is the carrying value of the bonds on December 31, 2011? $4,915,881 $4,901,036 + ($98,964 3/20) = $4,915,881 A company issues $5,000,000, 7.8%, 20-year bonds to yield 8% on January 1, 2010. Interest is paid on June 30 and December 31. The proceeds from the bonds are $4,901,036. What is interest expense for 2011, using straight-line amortization? $394,948 ($5,000,000 .078) + ($98,964 20) = $394,948 72. 74. 75. On January 1, 2010, Huber Co. sold 12% bonds with a face value of $600,000. The bonds mature in five years, and interest is paid semiannually on June 30 and December 31. The bonds were sold for $646,200 to yield 10%. Using the effective-interest method of amortization, interest expense for 2010 is $64,436. $646,200 .05 = $32,310 [$646,200 ($36,000 $32,310)] .05 = 32,126 $64,436 On January 2, 2010, a calendar-year corporation sold 8% bonds with a face value of $600,000. These bonds mature in five years, and interest is paid semiannually on June 30 and December 31. The bonds were sold for $553,600 to yield 10%. Using the effective-interest method of computing interest, how much should be charged to interest expense in 2010? $55,544. $553,600 .05 = $27,680 [$553,600 + ($27,680 $24,000)] .05 = 27,864 $55,544 76. The following information applies to both questions 77 and 78. On October 1, 2010 Macklin Corporation issued 5%, 10-year bonds with a face value of $1,000,000 at 104. Interest is paid on October 1 and April 1, with any premiums or discounts amortized on a straight-line basis. 77. The entry to record the issuance of the bonds would include a credit of $40,000 to Premium on Bonds Payable. ($1,000,000 1.04) $1,000,000 = $40,000 premium Bond interest expense reported on the December 31, 2010 income statement of Macklin Corporation would be $11,500 [($1,000,000 .05) 3/12] [($40,000 10) 3/12] = $11,500 78. The following information applies to both questions 79 and 80. On October 1, 2010 Bartley Corporation issued 5%, 10-year bonds with a face value of $500,000 at 104. Interest is paid on October 1 and April 1, with any premiums or discounts amortized on a straight-line basis. 79. The entry to record the issuance of the bonds would include a credit of $20,000 to Premium on Bonds Payable. ($500,000 1.04) $500,000 = $20,000 premium Bond interest expense reported on the December 31, 2010 income statement of Bartley Corporation would be $5,750 [($500,000 .05) 3/12] [($20,000 10) 3/12] = $5,750 80. 81. At the beginning of 2010, Wallace Corporation issued 10% bonds with a face value of $900,000. These bonds mature in the five years, and interest is paid semiannually on June 30 and December 31. The bonds were sold for 833,760 to yield 12%. Wallace uses a calendar-year reporting period. Using the effectiveinterest method of amortization, what amount of interest expense should be reported for 2010? (Round your answer to the nearest dollar.) $100,353 ($833,760 .06) = $50,026; [$50,026 ($900,000 .05)] = $5,026 ($833,760 + $5,026) .06 = $50,327 + $50,026 $50,327 = $100,353 On January 1, Patterson Inc. issued $5,000,000, 9% bonds for $4,695,000. The market rate of interest for these bonds is 10%. Interest is payable annually on December 31. Patterson uses the effective-interest method of amortizing bond discount. At the end of the first year, Patterson should report unamortized bond discount of $285,500. ($4,695,000 .10) ($5,000,000 .09) = $19,500 ($5,000,000 $4,695,000) $19,500 = $285,500 On January 1, Martinez Inc. issued $3,000,000, 11% bonds for $3,195,000. The market rate of interest for these bonds is 10%. Interest is payable annually on December 31. Martinez uses the effective-interest method of amortizing bond premium. At the end of the first year, Martinez should report unamortized bond premium of: $184,500 ($3,000,000 .11) ($3,195,000 .10) = $10,500 ($3,195,000 $3,000,000) $10,500 = $184,500 At the beginning of 2010, Winston Corporation issued 10% bonds with a face value of $600,000. These bonds mature in five years, and interest is paid semiannually on June 30 and December 31. The bonds were sold for 555,840 to yield 12%. Winston uses a calendar-year reporting period. Using the effectiveinterest method of amortization, what amount of interest expense should be reported for 2010? (Round your answer to the nearest dollar.) $66,901 ($555,840 .06) = $33,350; [$33,350 ($600,000 .05)] = $3,350 ($555,840 + $3,350) .06 = $33,551 $33,350 + $33,551 = $66,901 Kant Corporation retires its $100,000 face value bonds at 102 on January 1, following the payment of interest. The carrying value of the bonds at the redemption date is $96,250. The entry to record the redemption will include a credit of $3,750 to Discount on Bonds Payable. $100,000 $96,250 = $3,750 discount Carr Corporation retires its $100,000 face value bonds at 105 on January 1, following the payment of interest. The carrying value of the bonds at the redemption date is $103,745. The entry to record the redemption will include a debit of $3,745 to Premium on Bonds Payable. $103,745 $100,000 = $3,745 premium. 82. 83. 84. 85. 86. 87. At December 31, 2010 the following balances existed on the books of Foxworth Corporation: Bonds Payable $2,000,000 Discount on Bonds Payable 160,000 Interest Payable 50,000 Unamortized Bond Issue Costs 120,000 If the bonds are retired on January 1, 2011, at 102, what will Foxworth report as a loss on redemption? $320,000 ($2,000,000 1.02) ($2,000,000 $160,000 $120,000) = $320,000 88. At December 31, 2010 the following balances existed on the books of Rentro Corporation: Bonds Payable $1,500,000 Discount on Bonds Payable 120,000 Interest Payable 37,000 Unamortized Bond Issue Costs 90,000 If the bonds are retired on January 1, 2011, at 102, what will Rentro report as a loss on redemption? $240,000 ($1,500,000 1.02) ($1,500,000 $120,000 $90,000) = $240,000 89. The December 31, 2010, balance sheet of Hess Corporation includes the following items: 9% bonds payable due December 31, 2019 Unamortized premium on bonds payable $1,000,000 27,000 The bonds were issued on December 31, 2009, at 103, with interest payable on July 1 and December 31 of each year. Hess uses straight-line amortization. On March 1, 2011, Hess retired $400,000 of these bonds at 98 plus accrued interest. What should Hess record as a gain on retirement of these bonds? Ignore taxes. $18,600. = $410,600 (CV of retired bonds) $410,600 ($400,000 .98) = $18,600. 90. On January 1, 2004, Hernandez Corporation issued $4,500,000 of 10% ten-year bonds at 103. The bonds are callable at the option of Hernandez at 105. Hernandez 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, 2010, when the fair market value of the bonds was 96, Hernandez repurchased $1,000,000 of the bonds in the open market at 96. Hernandez has recorded interest and amortization for 2010. Ignoring income taxes and assuming that the gain is material, Hernandez should report this reacquisition as a gain of $49,000. = $1,009,000 (CV of retired bonds) $1,009,000 ($1,000,000 .96) = $49,000. 91. The 10% bonds payable of Nixon Company had a net carrying amount of $570,000 on December 31, 2010. The bonds, which had a face value of $600,000, 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, 2011, several years before their maturity, Nixon retired the bonds at 102. The interest payment on July 1, 2011 was made as scheduled. What is the loss that Nixon should record on the early retirement of the bonds on July 2, 2011? Ignore taxes. $37,800. $570,000 + [($570,000 .06) ($600,000 .05)] = $574,200 (CV of bonds) $574,200 ($600,000 1.02) = $37,800. A corporation called an outstanding bond obligation four years before maturity. At that time there was an unamortized discount of $300,000. To extinguish this debt, the company had to pay a call premium of $100,000. Ignoring income tax considerations, how should these amounts be treated for accounting purposes? Charge $400,000 to a loss in the year of extinguishment. $300,000 + $100,000 = $400,000 The 12% bonds payable of Nyman Co. had a carrying amount of $832,000 on December 31, 2010. The bonds, which had a face value of $800,000, were issued at a premium to yield 10%. Nyman uses the effective-interest method of amortization. Interest is paid on June 30 and December 31. On June 30, 2011, several years before their maturity, Nyman retired the bonds at 104 plus accrued interest. The loss on retirement, ignoring taxes, is $6,400. $832,000 [($800,000 .06) ($832,000 .05)] = $825,600 (CV of bonds) ($800,000 1.04) $825,600 = $6,400 Didde Company issues $10,000,000 face value of bonds at 96 on January 1, 2009. The bonds are dated January 1, 2009, pay interest semiannually at 8% on June 30 and December 31, and mature in 10 years. Straight-line amortization is used for discounts and premiums. On September 1, 2012, $6,000,000 of the bonds are called at 102 plus accrued interest. What gain or loss would be recognized on the called bonds on September 1, 2012? $272,000 loss {$9,600,000 + [$400,000 (3 2/3 10)]} .60 = $5,848,000 $6,120,000 $5,848,000 = $272,000. 92. 93. 94. 95. Cortez Company issues $5,000,000 face value of bonds at 96 on January 1, 2009. The bonds are dated January 1, 2009, pay interest semiannually at 8% on June 30 and December 31, and mature in 10 years. Straight-line amortization is used for discounts and premiums. On September 1, 2012, $3,000,000 of the bonds are called at 102 plus accrued interest. What gain or loss would be recognized on the called bonds on September 1, 2012? $136,000 loss {$4,800,000 + [$200,000 (3 2/3 10)]} .60 = $2,924,000 $3,060,000 $2,924,000 = $136,000 On January 1, 2010, Ann Price loaned $45,078 to Joe Kiger. A zero-interestbearing note (face amount, $60,000) was exchanged solely for cash; no other rights or privileges were exchanged. The note is to be repaid on December 31, 2012. The prevailing rate of interest for a loan of this type is 10%. The present value of $60,000 at 10% for three years is $45,078. What amount of interest income should Ms. Price recognize in 2010? $4,508. $45,078 .10 = $4,508 On January 1, 2010, Jacobs Company sold property to Dains Company which originally cost Jacobs $760,000. There was no established exchange price for this property. Danis gave Jacobs a $1,200,000 zero-interest-bearing note payable in three equal annual installments of $400,000 with the first payment due December 31, 2010. The note has no ready market. The prevailing rate of interest for a note of this type is 10%. The present value of a $1,200,000 note payable in three equal annual installments of $400,000 at a 10% rate of interest is $994,800. What is the amount of interest income that should be recognized by Jacobs in 2010, using the effective-interest method? $99,480. $994,800 .10 = $99,480 On January 1, 2010, Crown Company sold property to Leary Company. There was no established exchange price for the property, and Leary gave Crown a $2,000,000 zero-interest-bearing note payable in 5 equal annual installments of $400,000, with the first payment due December 31, 2010. The prevailing rate of interest for a note of this type is 9%. The present value of the note at 9% was $1,442,000 at January 1, 2010. What should be the balance of the Discount on Notes Payable account on the books of Leary at December 31, 2010 after adjusting entries are made, assuming that the effective-interest method is used? $428,220 $2,000,000 $1,442,000 ($1,442,000 .09) = $428,220 96. 97. 98. 99. Putnam Companys 2010 financial statements contain the following selected data: Income taxes Interest expense Net income $40,000 20,000 60,000 Putnams times interest earned for 2010 is 6 times. $60,000 + $40,000 + $20,000 = 6 times. $20,000 100. In the recent year Hill Corporation had net income of $140,000, interest expense of $40,000, and tax expense of $20,000. What was Hill Corporation's times interest earned ratio for the year? 5.0 ($140,000 + $40,000 + $20,000) $40,000 = 5.0 In recent year Cey Corporation had net income of $250,000, interest expense of $50,000, and a times interest earned ratio of 9. What was Cey Corporation's income before taxes for the year? $400,000 ($250,000 + $50,000 + X) $50,000 = 9 ($300,000 + X) = 9 $50,000 X = $150,000; IBT = $400,000 ($250,000 + $150,000 The adjusted trial balance for Lifesaver Corp. at the end of the current year, 2010, contained the following accounts. 5-year Bonds Payable 8% $1,500,000 Bond Interest Payable 50,000 Premium on Bonds Payable 100,000 Notes Payable (3 mo.) 40,000 Notes Payable (5 yr.) 165,000 Mortgage Payable ($15,000 due currently) 200,000 Salaries Payable 18,000 Taxes Payable (due 3/15 of 2011) 25,000 The total long-term liabilities reported on the balance sheet are $1,950,000. $1,500,000 + $100,000 + $165,000 + ($200,000 $15,000) = $1,950,000 Use the following information for questions *103 through *105: On December 31, 2008, Nolte Co. is in financial difficulty and cannot pay a note due that day. It is a $600,000 note with $60,000 accrued interest payable to Piper, Inc. Piper agrees to accept from Nolte equipment that has a fair value of $290,000, an original cost of $480,000, and accumulated depreciation of $230,000. Piper also forgives the accrued interest, extends the maturity date to December 31, 2011, reduces the face amount of 101. 102. the note to $250,000, and reduces the interest rate to 6%, with interest payable at the end of each year. *103. Nolte should recognize a gain or loss on the transfer of the equipment of $40,000 gain. $290,000 ($480,000 $230,000) = $40,000 *104. Nolte should recognize a gain on the partial settlement and restructure of the debt of $75,000. ($600,000 + $60,000) [$290,000 + $250,000 + ($250,000 .06 3)] = $75,000. *105. Nolte should record interest expense for 2011 of $0. 0. The effective-interest rate is 0% 106. On July 1, 2010, Spear Co. issued 1,000 of its 10%, $1,000 bonds at 99 plus accrued interest. The bonds are dated April 1, 2010 and mature on April 1, 2020. Interest is payable semiannually on April 1 and October 1. What amount did Spear receive from the bond issuance? $1,015,000 ($1,000,000 .99) + ($1,000,000 .10 3/12) = $1,015,000 On January 1, 2010, Solis Co. issued its 10% bonds in the face amount of $3,000,000, which mature on January 1, 2020. The bonds were issued for $3,405,000 to yield 8%, resulting in bond premium of $405,000. Solis uses the effective-interest method of amortizing bond premium. Interest is payable annually on December 31. At December 31, 2010, Solis's adjusted unamortized bond premium should be $377,400. $405,000 [($3,000,000 .10) ($3,405,000 .08)] = $377,400 On July 1, 2009, Noble, Inc. issued 9% bonds in the face amount of $5,000,000, which mature on July 1, 2015. The bonds were issued for $4,695,000 to yield 10%, resulting in a bond discount of $305,000. Noble uses the effective-interest method of amortizing bond discount. Interest is payable annually on June 30. At June 30, 2011, Noble's unamortized bond discount should be $264,050. 20092010: $4,695,000 + [($4,695,000 .1) ($5,000,000 . = $4,714,500. 20102011: $4,714,500 + ($471,450 $450,000) = $4,735,950 $5,000,000 $4,735,950 = $264,050. 109. On January 1, 2010, Huff Co. sold $1,000,000 of its 10% bonds for $885,296 to yield 12%. Interest is payable semiannually on January 1 and July 1. What amount should Huff report as interest expense for the six months ended June 30, 2010? 107. 108. 09)] $53,118 $885,296 .06 = $53,118 110. On January 1, 2011, Doty Co. redeemed its 15-year bonds of $2,500,000 par value for 102. They were originally issued on January 1, 1999 at 98 with a maturity date of January 1, 2014. The bond issue costs relating to this transaction were $150,000. Doty amortizes discounts, premiums, and bond issue costs using the straight-line method. What amount of loss should Doty recognize on the redemption of these bonds (ignore taxes)? $90,000 ($2,500,000 1.02) = $90,000 111. On its December 31, 2010 balance sheet, Emig Corp. reported bonds payable of $6,000,000 and related unamortized bond issue costs of $320,000. The bonds had been issued at par. On January 2, 2011, Emig retired $3,000,000 of the outstanding bonds at par plus a call premium of $70,000. What amount should Emig report in its 2011 income statement as loss on extinguishment of debt (ignore taxes)? $230,000 ($3,000,000 + $70,000) [($6,000,000 $320,000) 1/2] = $230,000 On January 1, 2006, Goll Corp. issued 1,000 of its 10%, $1,000 bonds for $1,040,000. These bonds were to mature on January 1, 2016 but were callable at 101 any time after December 31, 2009. Interest was payable semiannually on July 1 and January 1. On July 1, 2011, Goll called all of the bonds and retired them. Bond premium was amortized on a straight-line basis. Before income taxes, Goll's gain or loss in 2011 on this early extinguishment of debt was $8,000 gain. 112. ($1,000,000 1.01) = $8,000 113. On June 30, 2011, Omara Co. had outstanding 8%, $3,000,000 face amount, 15year bonds maturing on June 30, 2021. 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, 2011 were $105,000 and $30,000, respectively. On June 30, 2011, Omara 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? $2,865,000. $3,000,000 ($105,000 + $30,000) = $2,865,000 114. A ten-year bond was issued in 2009 at a discount with a call provision to retire the bonds. When the bond issuer exercised the call provision on an interest date in 2011, the carrying amount of the bond was less than the call price. The amount of bond liability removed from the accounts in 2011 should have equaled the face amount less unamortized discount. Paige Co. took advantage of market conditions to refund debt. This was the fourth refunding operation carried out by Paige 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 part of continuing operations. 115. *116. Eddy Co. is indebted to Cole under a $400,000, 12%, three-year note dated December 31, 2009. Because of Eddy's financial difficulties developing in 2011, Eddy owed accrued interest of $48,000 on the note at December 31, 2011. Under a troubled debt restructuring, on December 31, 2011, Cole agreed to settle the note and accrued interest for a tract of land having a fair value of $360,000. Eddy's acquisition cost of the land is $290,000. Ignoring income taxes, on its 2011 income statement Eddy should report as a result of the troubled debt restructuring Gain on Disposal Restructuring Gain $70,000 $88,000 $360,000 $290,000 = $70,000 ($400,000 + $48,000) $360,000 = $88,000

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Texas Tech - NRM - 1301
. InwhichofthefollowingsituationswouldthemortalityNOTbeconsideredcompensatory: StudentResponse Value CorrectAnswer Feedback A. mortalityfrom 0% predationincreases, butthetotalmortality ratestaysthesame becausefewer animalsdiefrom disease B. 100animalsare
Texas Tech - NRM - 1301
1. Whichofthefollowinganimalsismostcloselyassociatedwithclimaxhabitats? StudentResponse A. easterncottontailinPA B. whitetaileddeerinKY C. RockyMountainelkinWY D. desertbighornsheepinAZ E. coyoteinTX Score: 0/1 2. Whichofthefollowingforceshascausedthemost
Texas Tech - NRM - 1301
1. Wildlifeincludes StudentResponse Value CorrectAnswer Feedback Keeptrying A. allplantsandanimals 0% B. 'higher'animalsthat 0% aregamespecies C. allvertebratelife 0%D. plantsandanimals 100% thatarenotcultivated ordomesticated E. fish,amphibians,and 0%
Texas Tech - NRM - 1301
America is so young and the people who immigrated over here didnt have the things we have today. The early Americans were nave and werent worried about the wildlife population I think. The circumstances were so very different. They had to hunt, grow, or b
Texas Tech - NRM - 1301
America is so young and the people who immigrated over here didnt have the things we have today. The early Americans were nave and werent worried about the wildlife population I think. The circumstances were so very different. They had to hunt, grow, or b
Texas Tech - NRM - 1301
I f my forest had a problem with the grouse population I would definitely ban hunting and monitor their growth until their numbers were up high enough to hunt them again. I would do this by tagging some and watching their food supply and number of young.
Texas Tech - NRM - 1301
T here are several reasons managing for disease is so difficult for wildlife managers. One r eason is that managers do not want to kill thousands of members of a species when only a few may possess the disease. They do their best by picking up dead animal
Texas Tech - NRM - 1301
Water is manipulated in many ways. Managing water can benefit the environment and the organisms living in the habitat. A few ways include drying and flooding, blasting, flood-prevention lakes, and structures to collect water. Flooding and drying are both
Texas Tech - NRM - 1301
I agree with this argument. I think exotics are exotics for a reason. If an exotic get outs it should be up to the land owner to report the escaped animal. Exotics should each have to be marked somehow and undergo other legal processes to discourage the i
Texas Tech - NRM - 1301
The ten percent rule is an estimation of the energy converted from one trophic level to the next. After a certain number of trophic levels though, usually three of four, no more can exist in a natural ecosystem because of the little energy left. There lev
Texas Tech - NRM - 1301
1. WhichofthefollowingisNOTananimaladaptationtodealingwithwaterintheenvironment? StudentResponse A. Developingbroad, furredfeet. Value 0% CorrectAnswer Feedback B. Developingkidney 0% functionetc.togetall neededwaterfrom foods. C. Developingnasal 0% glan
Texas Tech - NRM - 1301
ThinkingLikeaMountainAdeepchestybawlechoesfromrimrocktorimrock,rollsdownthemountain,andfades intothefarblacknessofthenight.Itisanoutburstofwilddefiantsorrow,andof contemptforalltheadversitiesoftheworld. Everylivingthing(andperhapsmanyadeadoneaswell)paysh
Texas Tech - NRM - 2305
S tokes Guide to Bird Songs Disc 3 1. Black swift, Boxes swift 2. White throated swift 3. Broad billed hummingbird 4. Buff bellied hummingbird, Violet crowned hummingbird 5. Lucifer hummingbird, Black chinned hummingbird 6. Annas hummingbird, Costas hummi
Texas Tech - NRM - 2305
I t is an extreme step for government regulation I know, but i t may be the only effective way. I f animals are regulated such as deer, why should we be above that? When deer destroy vegetation and overpopulate, we feel i t is our duty to intervene. We ar
Texas Tech - NRM - 2305
This crisis is definitely a great opportunity to change our old ways of doing things. Oil isnt our only option for fuel. Many car companies are resorting to diesel for cars which is cleaner. Also, this may give scientists a great incentive to create more
Texas Tech - NRM - 2305
Evolutionisthebasisofbiologyforareason.Evolutionisformulatedonthechangespopulations gothroughovergenerations.Biologyexistsontheidealthatwecantestandconcludehoworganisms interactandchangetodealwiththeirenvironment.Itisaboutunderstandingorganismstomake conc
Texas Tech - NRM - 2305
Section 1: Multiple choice Circle the correct answer (there is only one). Each correct answer is worth 2 points. 1) A set of interacting species that live in the same area is called a(n): a) Community level effect b) Ecological community c) Ecosystem d) I
Texas Tech - NRM - 2305
Section 1: Multiple choice Circle the correct answer (there is only one). Each correct answer is worth 2 points. 1) A set of interacting species that live in the same area is called a(n): a) Community level effect b) Ecological community c) Ecosystem d) I
Texas Tech - NRM - 2305
NRM 2302Spring 2009QUIZ 4Name Paige Sprague Section 1: Multiple choice Circle the correct answer (there is only one). Each correct answer is worth 2 points. 1) The phenomenon in which city centers are hotter on average than surrounding areas is called:
Texas Tech - NRM - 2305
1SCORE S HEETWas i t an evaluation or an Opinion paper Judgement provided/ f low of logic Summary d id you give yourv iews?252510 6 +0.5for every peer-reviewed science a rticle10 6 4Peer reviewed li terature(extra point)Proper formatting In tex
Texas Tech - ANTH - 2302
Ethnology- The science that analyzes and compares human cultures, as in social structure, language, religion, and technology; cultural Covert observation- Participant observation carried out without the explicit awareness and agreement of the social unit
Texas Tech - ANTH - 2302
Topics Body Modification Marriage and family Gender Concepts/ Terms Irizumi- tattoo themselves to rebel against upper class. TattooingPiercingTooth sharpeningLip DiskingTrephinationBody BuildingPlastic SurgeryReasons for body modifications- self expressio
Texas Tech - ANTH - 2302
TopicsReligion Culture change The arts Concepts/termsFunctions of religion- human universal Order and meaning to the universe Anxiety reduction- model supernatural systems on their social structures Reinforcement of social order Animism- the notion that a
Texas Tech - ANTH - 2302
Topics Subsistence-the source from which food and other items necessary to exist are obtained Political Organization-the patterned ways in which power is legitimately used in a society to regulate behavior Social Stratification-the condition of being arra
Acton School of Business - BUSINESS - 201
Hypervigilant HypermarketsCarrefour comes to Romania stocking high tech securityWe found it very easy to install and integrate the American Dynamics equipment with the other products,Roxana TudosescuUTI SystemsWhen Carrefour, one of the largest food
Stanford - STA - MKT 1100
Concentrated Knowledge for the Busy Executive www.summary.comVol. 27, No. 3 (3 parts), Part 2, March 2005 Order # 27-07FILE: MARKETINGWhy Doing the New Thing Might Not Be the Right ThingRENOVATE BEFORE YOU INNOVATEBy Sergio Zyman with Armin A. Brott
Conestoga - MINE - 1235
BB201 Article Presentation Summary of Article: Over the years computer processing chips have become smaller and smaller and even some of them are as small as a pencil eraser. The class of Professor John Rogers at the University of Illinois has made some s
Conestoga - MINE - 1235
BB1201 Mall Field Trip AssignmentLaptops Part#1 - Product:Sony Style: 1- Vaio SZ 2- Vaio TZ 3- Vaio FZ 4- Vaio CR 5- Vaio NR The products sold in this store were very high quality. Their laptops are equipped with the latest technology and are offered at
Conestoga - MINE - 1235
BBI 201 Mall Field Trip Assignment Task TwoPart #1 Product: The store that I will establish will be called Sapphire Computers. My store will be selling the latest products in the technology world from various reputable companies. Some products I will be
Conestoga - EE - 1244
Acid rain (more accurately, acid precipitation) refers to a mixture of moist and dry materials that are emitted into the atmosphere and undergo chemical changes, and when united with water droplets in the air, become acidic. The emissions that cause acid
Conestoga - EE - 1244
Teste dUnite #1- La Durabilite des Ecosystemes Grenouilles Les deux principaux menaces des grenouilles sont la destruction et modification de lhabitat. Les 4 raisons que les grenouilles se disparessent-elles : Modification de lhabitat Qualites de lair et
Conestoga - EE - 1244
Teste dUnite- Le Chimie Definitions : Matire- est tous ce qui a une masse et occupe un espace Mlange Homogne (solution)- on voit une seul phase. Ex. eau sallee Mlange Heterogene (melange mechanique)- on coit plus quune phase. Ex. le pizza / leau + lhuile
Conestoga - EE - 1244
CritiquedunfilmdeladeuximeguerremondialeTheGreatRaid 1. Acteurs/ActricesPrincipaux : BenjaminBratt Lt.ColonelMucci JamesFranco CaptainPrince RobertMammone CaptainFisher MaxMartini 1stSgt.SidWojo JamesCarpinello Cpl.Aliteri ConnieNielsen MargaretUtinsky
Conestoga - EE - 1244
History Partie B Wilfrid Laurier - parti libral - est devenue le premier ministre en 1896 - premier premier ministre bilingue du Canada - avait des amis politiques au Qubec Clifrod Sifton - tait le ministre de lintrieur - sont tache tait de trouver des pa
Conestoga - EE - 1244
Journal du tournant du sicle: Un rve ou un cauchemar?~Les Chinois~le16mai1882, LavieestdureetilnyapasdespacepourvivreicidansmavilledeTaiSahn.Cesttrop difficileici.Ilestpresqueimpossibledegagnerdelargentpourmafamille.Nousavonspeudargent etnousdevonsvivre
Conestoga - EE - 1244
La Premire guerre mondiale Une lettre du frontChre Bertha, le 26 avril, Je suis dsol de pas tavoir crit pendant les dernires semaines. Il y a tellement de chose qui se passe ici, nous avons juste gagn la bataille de la Crte de Vimy en France. Ctait incro
Conestoga - EE - 1244
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Conestoga - EE - 1244
Raction Politiques la Grande DpressionPendant la Grande Dpression il y avait plusieurs partis politiques. Ils ont tous dit quils vont arrter la Grande Dpression ou faire des choses qui ne sont pas ralistes. Par exemple, le Crdit Social a dit quil allait
Conestoga - EE - 1244
Carte dIdentitPhotoCarte dIdentit TechtopiaNom: Charles Martel Date de Naissance: le 14 fvrier 2020 Lieu de Naissance: Moscou Pays dorigine: Russie Domicile: 5432 Rue Technol Profession: PiloteK 220455Signature_Created using UNREGISTERED Top Draw 4/
Conestoga - EE - 1244
ritiquedun C epublicitParticipePrsent Jesuiscontrecettepublicit.Cetteafficheestunetrsgrandeerreurpourla compagnieSony.JepensequeSonynevoulaitpasfaireaucunmaliceaveccetteaffiche maiscelaauntrsmauvaismessage. EndcouvrantcetteaffichesurlInternetjtaistrssur
Conestoga - EE - 1244
Journal Intime-Aurore lenfant martyrele 14 novembre, La nuit passe maman a battu Aurore la fille de Tlsphore. Je crois quelle est enceinte encore car elle a fait la mme chose la dernire fois. Je me rappelle de la dernire fois, ctait terrible, les cris, e
Conestoga - EE - 1244
Les Misrables Livre 1 Pratique du Conditionnel1-J'aiderais l'homme pris entre les roues de la voiture. 2-Je demanderais aux hommes qui 3-voudraient m'aider. 4-Nous essaierions de tirer l'homme. Si 5nous ferions quelque chose dincorrect, 6-nous pourrions
Conestoga - EE - 1244
Ville Imaginaire PofileNom: Charles Martel Date de Naissance: le 14 fvrier 2020 Lieu de Naissacne : Moscou Pays dorigine : Russie Domicile : 5432, Rue Technol Profession : Pilote A. Description du pass : (au pass)Charles tait sur le 14 fvrier 2020. Il a
Conestoga - EE - 1244
Basic Operating System Concepts1-What is the role of the operating system? The role of the operating system is to provide basic functionality on a computer. The software that manages access to a system's hardware and other resources. 2-What is considered
Conestoga - EE - 1244
Creating a Dual-Boot LaptopInstalling Windows XP 1- Once you have powered on your laptop insert your version of Windows XP. 2- The Installer will run automatically. Let the installer run. 3- Several minutes during the installation a window will appear. R
Conestoga - EE - 1244
TEE201 CPU is the most critical part of your computer(brains of your computer, select CPU first) motherboard, used to power your CPU AMD uses more power=generates more heat(good power supply and cooling system) 3 key things to optimize are your motherbo
Conestoga - EE - 1244
Utility to make USB flash drives bootablehttp:/blogs.oreilly.com/digitalmedia/2004/10/utility-to-make-usb-flash-driv.htmlCreating bootable flash driveshttp:/www.weethet.nl/english/hardware_bootfromusbstick.php http:/ucsu.colorado.edu/~shaher/Bootable_U
Conestoga - EE - 1244
Abortion,pouroucontreJesuispourlabortion.Celaestmadcisionparcequelesfemmesontledroitde dcidersiellesveulentavoirunenfantousiellesneveulentpasavoirunenfant.Celaest importantparcequelledoitavoirassezdargentpoursubvenirauxbesoinsdelenfantet aussidesesupport
Conestoga - EE - 1244
Le Premier ministre Harper dvoile une nouvelle initiative environnementaleLa cration d'une aire marine de conservation dans le lac Suprieur25 octobre 2007 NIPIGON (ONTARIO) Le Premier ministre Stephen Harper a annonc aujourd'hui la cration, au Canada, d
Conestoga - EE - 1244
LuniversitQuandtutudiesluniversittupeuxacqurirunemploitrsbon.Quandtu tudiesluniversittupeuxrecevoirundiplmedansnimportequelsujetquetu tudies.L'entrel'universitestgnralementrestreinteceuxquiontpralablementun diplmed'enseignementsecondaire.Ilyaaussiunprixp
Conestoga - EE - 1244
Mon Parti PolitiqueNotre parti sappelle le Parti du Soleil. Notre parti est nomm le Parti du Soleil ou le Parti Jaune parce que nous sommes un nouveau parti politique comme un le lever du soleil au commencement dune nouvelle journe. Nous voulons faire un
Conestoga - EE - 1244
Perdu en Mer-tape #2~Les Rgles~ 1. 2. 3. 4. 5. Pas de violence envers les autres membres du groupe Ne mange plus que tu as besoin (rations). Toutes les dcisions finales sont faites par le chef du groupe. Tous les personnes dans le groupe doit faire leur
Conestoga - EE - 1244
Avantages- un bon salaire - un emploi satisfaisant - un emploi trs unique- plusieurs pays vont entrer dans lindustrie alors les personnes doivent comprendre plusieurs languesInconvnient- les heures de travail sont en rapport avec ton anciennet dans la
Conestoga - EE - 1244
Alex ZanescoAdresse 2346 Gillingham Drive Burlington, Ontario L7P 4G6, Canada Tlphone 905-336-8446 (domicile) E-mail zander-92@hotmail.com Objectif Obtenir un emploi temps partiel pour gagner de largent afin daider payer mes tudes et pour avoir de lexpri
Conestoga - EE - 1244
Entrevue sur la Russite RflexionJe pense surtout quil y a beaucoup dtapes que tu dois accomplir pour lemploi que tu veux avoir, par exemple tu dois prendre certaines cours lcole secondaire ou luniversit ou au collge. Tu dois aussi tre motiv pour faire to
Conestoga - EE - 1244
Entrevue sur la RussiteChantal Provencher mre -Questions1. Quelles sont les exigences de votre travail? Aimer le contact avec les personnes. Rsoudre les problmes en groupe ou individuellement. Implmenter nouvelles procdures pour le travail. 2. Quelle typ
Conestoga - EE - 1244
Portfolio Personnel-ValeursMes quatre valeurs principales personnelles sont: 1) de vivre des changements et de faire des taches diverses 2) de vivre des aventures, et de relever des dfis 3) de travailler dehors prs de la nature 4) de rencontrer des gens
Conestoga - EE - 1244
Sample Curriculum Vitae Template CONTACT INFORMATION Name Address Telephone Cell Phone Email PERSONAL INFORMATION Date of Birth Place of Birth Citizenship Visa Status Sex Optional Personal Information: Marital Status Spouse's Name Children EMPLOYMENT HIST
Conestoga - EE - 1244
Travail de visualisation personnelleRflextion:-PrsentDans ma prsente vie jai beaucoup dinfluences. Les choses tel que comme les sports et la technologie minfluence beaucoup car ils font partis de ma vie. Ma famille et mes amis minfluence beaucoup aussi
Conestoga - EE - 1244
Business Questionnaire Results1) Male: 17 Female: 33 2) Male: 14 (3), 15 (4), 16 (7), 18 (0). Female: 14 (6), 15 (7), 16 (12), 18 (4). 3) Two females did not participate. 4) Male: Less than one bag (9), One Bag (3), Two Bags (2), Two Bags+ (3). Female: L
Conestoga - EE - 1244
The Boeing Company*William E. Boeing was an aviation pioneer who founded The Boeing Company.Boeing was born in Detroit Michigan to a wealthy German Mining Engineer. He was sent by his parents to study in Switzerland. In 1900, he returned to the United