Woolery, Inc. had 50,000 shares of common stock outstanding at January 1, 2009. On March 31, 2009, an additional 12,000 shares were sold for cash. Woolery also had $4,000,000 of 6% convertible bonds outstanding throughout the year. The bonds are convertible into 40,000 shares of common stock. Net...

1.Lockard Company purchased machinery on January 1, 2010 for 80,000. The machinery is estimated to have a salvage value of $8,000 after a useful life of 8 years. A) Compute 2010 depreciation expense using the sum-of the-years -digits method. B) Compute 2010 depreciation expense using the...

Five years ago, Tom loaned his son John $20,000 to start a business. A note was executed with an interest rate of 8%, which is the Federal rate. The note required monthly payments of the interest with the $20,000 due at the end of ten years. John always made the interest payments until last year....

Nevus Tattoo Parlor is considering a capital budgeting project. This project will initially require a $25,000 investment in equipment and a $3,000 working capital investment. The useful life of this project is 5 years with an expected salvage value of zero on the equipment. The working capital...

Why do variances occur? What happens within the business that makes this happen?

Mindy Feldkamp and her two colleagues, Oscar Lopez and Lori Melton, are personal trainers at an upscale health spa/resort in Tampa, Florida. They want to start a health club that specializes in health plans for people in the 50 age range. The growing population in this age range and strong...

11) Anjali and Co. owns a $1,200,000 building. In addition, it has $120,000 in accounts receivable (rent to be collected from its tenants) and $80,000 in supplies and materials. The company's only other asset is cash. The company also has short tem debt of $100,000, long term notes payable...

the property kicked out to each shareholder has bases of $3000 and fair value of $10000. E & P before distribution is $8000. how much is the dividend to both shareholders?

five year bonds are sold for $508,026. Face value of $500,000 and interest rate 10%. Interest paid semi-annually on March 1 and Sept 1. using straight line amortization. Prepare journal entries

A machine cost $80,000, has annual depreciation expense of $16,000, and has accumulated depreciation of $40,000 on December 31, 2010. On April 1, 2011, when the machine has a fair value of $32,000, it is exchanged for a similar machine with a fair value of $96,000 and the proper amount of cash is...