3141 - Chapter 14 CPA

3141 - Chapter 14 CPA 3141 - Chapter 14 CPA
Changes are done, please view the flashcard.

Preview Flashcards

Front Back
On July 1, 2010, Spear Co. issued 1,000 of its 10%, $1,000 bonds at 99 plus accrued interest.
a. $1,015,000 b. $1,000,000 c. $990,000 d. $965,000
 
a) $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.
a. $405,000. b. $377,400. c. $364,500. d. $304,500.
 
b) $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.
a. $264,050. b. $255,000. c. $244,000. d. $215,000.
 
a) $264,050
On January 1, 2010, Huff Co. sold $1,000,000 of its 10% bonds for $885,296 to yield 12%.
a. $44,266 b. $50,000 c. $53,118 d. $60,000
 
c. $53,118
On January 1, 2011, Doty Co. redeemed its 15-year bonds of $2,500,000 par value for 102.
a. $90,000 b. $60,000 c. $50,000 d. $0
 
a. $90,000
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.
a. $0 b. $70,000 c. $160,000 d. $230,000
 
d. $230,000
On January 1, 2006, Goll Corp. issued 1,000 of its 10%, $1,000 bonds for $1,040,000.
a. $30,000 gain. b. $12,000 gain. c. $10,000 loss. d. $8,000 gain.
 
d. $8,000 gain.
On June 30, 2011, Omara Co. had outstanding 8%, $3,000,000 face amount, 15-year bonds maturing on June 30, 2021.
a. $2,970,000. b. $2,895,000. c. $2,865,000. d. $2,820,000.
 
c. $2,865,000.
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
a. call price. b. call price less unamortized discount. c. face amount less unamortized discount. d. face amount plus unamortized discount.
 
c. 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
a. gain, net of income taxes. b. loss, net of income taxes. c. part of continuing operations. d. deferred credit to be amortized over the life of the new debt.
 
c. part of continuing operations.
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 a. $158,000 $0 b. $110,000 $0 c. $70,000 $40,000 d. $70,000 $88,000
 
disposal restructuring
d. $70,000 $88,000
Enter Password

  

Upgrade and get a lot more done!
Upgrade