Accounting that records revenue when earned and expenses when incurred to
produce those revenues; recognizes the impact of transactions as they occur
regardless of whether t
Bonds at face amount
Bonds at a discount
Issuing bonds at a premium
28,500,000 * 0.41464 (table at 4.5% (9%/2) 20 pmts
1,140,000 (28,500,000 * .08/2) * 13.00794 (table 4.5% and
The percentage on the table is: market rate / 2 semiannual
Let's say the partnership agreement says they divide income by a 3:2 ratio and they received
$200,000 net income.
To break it down you would:
Partner A is 3
Partner B is 2
A partnership is a joining of two people in this example so you add them together (
Adele Corp., a wholesaler of music equipment, issued $22,000,000 of 20year, 7% callable bonds on
March 1, 2016 at their face amountI with interest payable on March 1 and September 1. The scal year
of the company is the calendar year.
Effect of Financing on Earnings per Share
Domanico Co., which produces and sells biking equipment, is financed as follows:
Bonds payable, 8% (issued at face
Preferred $5 stock, $10 par
Common stock, $20 par
Allocation of the cost of a long-term asset to expense over its useful life.
Any consecutive, 12-month period that a business adopts as its accounting
The ending date of a business's fiscal year.
The net income reported on the income statement for the current year Iwas $400,000. Depreciation recorded on store equipment
for the year amounted to $16,000. Balances of the current asset and current abity accounts at the beginning and end of the year