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A company issues bonds with a par value of $900,000 on their stated issue date. The
bonds mature in 10 years and pays 10% annual interest in semiannual payments. On the
issue date, the annual market rate for the bonds is 12%. What is the selling price of the
bond?
Answer:
The year-end adjusted trial balance of ABC Supply for the current year is shown
below:
Prepare closing entries at December 31 for the current year.
Answer:
Discuss how the principles of internal control apply to cash receipts.
Answer:
Discuss the importance of periodic reporting and the time period assumption.
Answer:
Are relevant costs useful to management in determining long-run pricing decisions?
Answer:
What is the purpose of a good financial statement analysis report? What are the key
components?
Answer:
A company purchased equipment valued at $200,000 on January The equipment has an
estimated useful life of six years or 5 million units. The equipment is estimated to have
a salvage value of $13,400. Assuming the double declining balance method of
depreciation, what is the depreciation for the second year?
A $41,445.91
B. $62,137.80
C. $31,100.00
D. $55,980.00
E. $44,442.22
Answer:
What is the purpose of a post-closing trial balance?
Answer:
The __________________________ is the rate that yields a net present value of zero
for an investment.
Answer:
What is the amount of interest that is due on a $36,000, 3-month, 4% note receivable?
Answer:
_______________________ are deposits made and recorded by the depositor but not
yet recorded on the bank statement.
Answer:
What is meant by equivalent units of production, and why are they important when a
process cost accounting system is used?
Answer:
Why should assets be recorded at historical cost?
Answer:
____________________ preferred stock gives holders the option to exchange their
preferred shares for common shares at a specified rate.
Answer:
____________________ are the means to take information out of an accounting
system and make it available to users.
Answer:
On January 1, 2013, Timley issues $2,200,000 of 6%, 12-year bonds at a price of 105½
that pay interest semiannually. The straight-line method is used to amortize any bond
premium or discount. What is the journal entry to record the first interest payment?
Answer:
______________________________ applies analytical tools to general-purpose
financial statements and related data for making business decisions.
Answer:
