1) Explain the accounting procedures when a bond’s interest period does not coincide
with the issuer’s accounting period.
2) The BlueFin Partnership agrees to dissolve. The remaining cash balance after
liquidating partnership assets and liabilities is $60,000. The final capital account
balances are: Smith, $30,000; Nagy, $20,000; and Russ, $10,000. Prepare the journal
entry to distribute the remaining cash to the partners.
3) ___________ expenses are those expenses that support a company’s overall
operations and include expenses related to accounting, human resource management,
and financial management.
4) A company issued 10-year, 9% bonds with a par value of $500,000 when the market
rate was 9.5%. The company received $484,087 in cash proceeds. Using the
straight-line method, prepare the issuer’s journal entry to record the first semiannual
interest payment and the amortization of any bond discount or premium.
5) The founders of Games2U understand that managing plant assets is important to their
company’s success. What are some of the plant asset issues that the founders identify as
important to them?
6) Discuss how CVP analysis can be useful in planning.
7) What are the rights generally granted to common stockholders?
8) ______________________________ applies analytical tools to general-purpose
financial statements and related data for making business decisions.
9) ____________________ inventory consists of completed products ready for sale by
a manufacturer.
10) On April 1 of the current year, a company disposed of an automobile that had cost
$20,000. The auto had a salvage value of $2,000, and a useful life of 5 years. The
accounting records showed accumulated depreciation for this automobile of $8,100 as
of April 1 of the current year. The asset was discarded after an accident, and $10,500
cash was received from an insurance claim.
Prepare the journal entry to record the disposal of the automobile.