x
Info
x
Warning
x
Danger

Accounting Expert Answers & Study Resources : Page 452

The vast field of accounting contributes to one of the largest subjects in our study resources. Accounting flashcards, homework answers for textbooks & other learning aids can increase your competency in this domain instantly. Become a top student with our support. Search Now…

Expert Answers

Ask an Expert

Our Experts can answer your tough homework and study questions.

Answers in as fast as 15 minutes
Post a Question
150245 Resources
0 Students Benefited

1.A company looking to issue debt instead of equity may want to consider debt due to favorable tax benefits. a.True b.False 2.Debt financing typically has a higher cost of capital than equity. a.True b.False 3.Small and medium-size companies typically have more difficulty attracting equity capital than debt capital. a.True b.False 4.An advantage of debt financing is that it decreases.

Homework Answers
26 Views
  • 1.A company looking to issue debt instead of equity may
  • Accounting
Homework Answers
View Answer

129.What are the four components necessary to account for investments in held-to-maturity debt securities? 130.What are the four components necessary to account for investments in trading securities? 131.What are the five components necessary to account for investments in available-for-sale securities? 132.What three steps are necessary to evaluate whether or not an investment is.

Homework Answers
14 Views
  • 129.What the four components necessary to account for investments in
  • Accounting
Homework Answers
View Answer

21.A company could decide to call its bonds because it will eliminate any restrictions on operations from certain debt covenants. a.True b.False 22.On the maturity date after the last interest payment is recorded, any premium or discount on bonds payable is always fully amortized. a.True b.False 23.A call provision gives the issuing company the option to.

Homework Answers
17 Views
  • 21.A company could decide to call its bonds because it
  • Accounting
Homework Answers
View Answer

11.Noncumulative preferred stock is entitled to all dividends, even if they are in the arrears. a.True b.False 12.Fully participating preferred shareholdersreceive extra dividends equally with therate ofcommon shareholders. a.True b.False 13.Companies can reacquire their own stock to reduce the likelihood of a hostile takeover. a.True b.False 14.Treasury stock does not vote, has no preemptive rights, cannot participate in dividends,.

Homework Answers
17 Views
  • 11.Noncumulative preferred stock entitled to all dividends, even if they
  • Accounting
Homework Answers
View Answer

41.Which of the following statements is false? a.Debenture bonds are secured liabilities b.Debenture bonds are issued based upon the credit rating of the company c.A company must have a long history of profitability to issue debenture bonds. d.A company must have strong positive cash flows to issue debenture bonds. 42.For which of the following types.

Homework Answers
180 Views
  • 41.Which of the following statements false? a.Debenture bonds secured liabilities b.Debenture bonds
  • Accounting
Homework Answers
View Answer

112.Listed below are various classifications of corporations. Following the list is a series of descriptive statements. a. public corporations e. stock companies b. open corporations f. foreign corporations c. domestic corporations g. closed corporations d. nonstock companies ? ____ 1. Companies that do not issue stock or operate for profit. ____ 2. As viewed by a state, companies operating within that state that are incorporated in another state. ____ 3. Companies that do not.

Homework Answers
17 Views
  • 112.Listed below various classifications of corporations. Following the list a
  • Accounting
Homework Answers
View Answer

61.Which of the following share option plans would involve the creation of a liability account over the life of the plan? a.all share option plans b.fixed compensatory share option plans c.performance-based compensatory share option plans d.share option plans with stock appreciation rights 62.Which of the following should normallybe accounted for under the fairvalue method? a.share option.

Homework Answers
16 Views
  • 61.Which of the following share option plans would involve the
  • Accounting
Homework Answers
View Answer

72.For a compensatory share option plan, a formal journal entry or entries would be required for which of the following dates? Issuance of Share Options on the Issuance of Stock on Grant Date the Exercise Date I. Yes Yes II. Yes No III. No No IV. No Yes ? a. I b. II c. III d. IV Exhibit 15-5 On January 1, 2016, Roberts Company adopts a compensatory share option plan and grants 40 executives 1,000 shares each.

Homework Answers
18 Views
  • 72.For a compensatory share option plan, a formal journal entry
  • Accounting
Homework Answers
View Answer

180.Define the following characteristics of bonds: Debenture bonds Mortgage bonds Zero-coupon bonds Callable bonds Convertible bonds Serial bonds 181.How is the stated interest rate on the bond different from the effective rate? What can cause the difference between the two rates? 182.?How is the issue price for a bond determined? What are the three alternative states of the.

Homework Answers
13 Views
  • 180.Define the following characteristics of bonds: Debenture bonds Mortgage bonds Zero-coupon bonds
  • Accounting
Homework Answers
View Answer

59.Refer to Exhibit 14-1. These bonds sold at a. margin. b. a discount. c. par. d. a premium. 60.Refer to Exhibit 14-1. At date of issuance cash received would be a. $280,747. b. $287,765. c. $292,998. d. $299,998. 61.Refer to Exhibit 14-1. The discount at the date of bond issuance would be a. $2. b. $7,019. c. $12,235. d. $19,253. ?Exhibit 14-2 A $500,000, ten-year, 7% bond issue was sold to yield 6% interest payable annually. Actuarial information.

Homework Answers
19 Views
  • 59.Refer to Exhibit 14-1. These bonds sold at a. mar
  • Accounting
Homework Answers
View Answer

21.Which of the following types of corporations is owned or operated by a government unit? a.domestic b.private c.closed d.Public 22.A corporation whose stock is traded on a stock exchange is called a(n) a.foreign corporation. b.open corporation. c.domestic corporation. d.closed corporation. 23.Smith Corp. has both Class A and Class B shares of common stock. The difference between the two classes of.

Homework Answers
28 Views
  • 21.Which of the following types of corporations owned or operated
  • Accounting
Homework Answers
View Answer

158.A $700,000, 20-year, 8% bond issue was sold to yield 10%. Interest was payable annually. Actuarial information for 20 periods follows: 8% 10% Future value of 1 4.661 6.728 Present value of 1 0.21455 .14864 Future value of annuity of 1 45.762 57.275 Present value of annuity of 1 9.818 8.514   Required:Compute the amount of cash that was received when the bonds were issued. 159.On May.

Homework Answers
134 Views
  • 158.A $700,000, 20-year, 8% bond issue was sold to yield
  • Accounting
Homework Answers
View Answer

82.For share appreciation rights (SARs) compensation plans where the employee is expected to receive cash on the exercise date, the account that is credited in the year-end adjusting journal entry to recognize the compensation expense is a. Deferred Compensation. b. SAR Compensation Payable. c. Common Stock Option Warrants: SARs. d. Compensation Expense. ?Exhibit 15-8 On January 1, 2016, Margarita Company.

Homework Answers
182 Views
  • 82.For share appreciation rights (SARs) compensation plans where the employee
  • Accounting
Homework Answers
View Answer

1.Accumulated other comprehensive income is not reported with shareholder’s equity. a.True b.False 2.An open corporation does not allow the sale of their stock to the general public, only to investment capital brokers. a.True b.False 3.Miscellaneous fees arising from the issuance of stock are charged to the organization expense account only if this is not the company’s.

Homework Answers
22 Views
  • 1.Accumulated other comprehensive income not reported with shareholder’s equity. a.True b.False 2.An open
  • Accounting
Homework Answers
View Answer

136.Refer to Exhibit 14-15. What is theimplied interest rate? a. 6% b. 7% c. 8% d. greater than 8% 137.Refer to Exhibit 14-15.What is theinterest expense for the first year ? a. $700.20 b. $816.90 c. $798.06 d. $1,200.00 138.When a company issues a long-term non-interest-bearing note payable in exchange for cash and special rights, the difference between the cash proceeds and the present value of the note.

Homework Answers
19 Views
  • 136.Refer to Exhibit 14-15. What theimplied interest rate? a.
  • Accounting
Homework Answers
View Answer

164.Durham, Inc. issued $500,000 of its ten-year zero-coupon bonds on January 1, 2016, to yield 9%. The effective interest method is used. ? ? PV of $1 PV of an Annuity FV of $1 FV of an Annuity ? 9% 9% 9% 9% 10 periods 0.422 6.418 2.367 15.19 Required: a. Compute the cash proceeds from the sale of the bond. b. Prepare the journal entry to record the sale. c. Prepare the.

Homework Answers
15 Views
  • 164.Durham, Inc. issued $500,000 of its ten-year zero-coupon bonds January
  • Accounting
Homework Answers
View Answer

152.The interest rate used by the creditor to discount the future cash flows of an investment in a restructured loan is the a. current market rate. b. rate specified in the restructuring agreement. c. original contract rate. d. weighted average rate. 153.The creditor of a restructured loan calculates interest revenues during the periods after restructuring based on the a. original contract.

Homework Answers
20 Views
  • 152.The interest rate used by the creditor to discount the
  • Accounting
Homework Answers
View Answer

121.On January 1, 2017, Casey Company acquires a 30% interest in Hill Company by purchasing 6,000 shares of its 20,000 common stock for $16 per share. On January 1, 2017, the net assets of Hill Company were as follows: Book Value Fair Value Nondepreciable assets $ 60,000 $ 60,000 Depreciable assets (5-year remaining life) 200,000 240,000 $260,000 $300,000 Liabilities $ 20,000 $ 20,000 ? During.

Homework Answers
15 Views
  • 121.On January 1, 2017, Casey Company acquires a 30% interest
  • Accounting
Homework Answers
View Answer

102.Under the cost method of accounting for treasury stock transactions, when the proceeds from a sale are greater than the cost, the excess over cost is treated as a(n) a. increase in Other Expenses from Treasury Stock Sales. b. increase in Additional Paid-in Capital from Treasury Stock. c. increase in a contra-shareholders' equity account. d. None of these.

Homework Answers
19 Views
  • 102.Under the cost method of accounting for treasury stock transactions,
  • Accounting
Homework Answers
View Answer

11.The nominal rate is greater than the yield rate when bonds are issued at a premium. a.True b.False 12.When bonds are issued to the general public, the company typically does not use the services of an underwriter. a.True b.False 13.Premium on Bonds Payable is a contra asset account. a.True b.False 14.Discount on Bonds Payable is a contra liability account a.True b.False 15.When.

Homework Answers
18 Views
  • 11.The nominal rate greater than the yield rate when bonds
  • Accounting
Homework Answers
View Answer

139.A marketable security is initially classified as a trading security, an available-for-sale security, or a held-to-maturity debt security. Subsequently, a security can be transferred among categories. ? Required: Explain the accounting for a related unrealized holding gain or loss when a transfer to another category occurs. 140.ABC Company has been purchasing stock of XYZ.

Homework Answers
21 Views
  • 139.A marketable security initially classified as a trading security, an
  • Accounting
Homework Answers
View Answer

51.When a company carries out a stock split, the company usually a.receives less cash than market value. b.receives more cash than market value. c.issues more shares of stock. d.retires shares of stock. 52.A noncompensatory share purchase plan is designed to a.provide additional compensation to key officers and employees within the corporation. b.obtain more widespread employee ownership of.

Homework Answers
58 Views
  • 51.When a company carries out a stock split, the company
  • Accounting
Homework Answers
View Answer

112.On January 3, 2017, Nancy Corporation purchased the following equity securities as an investment: Number of Cost of Total Company Shares Share Cost A 400 $20 $ 8,000 B 2,000 12 24,000 C 800 22 17,600 These securities are classified as available-for-sale.Required: a. Prepare the journal entry to record the acquisition of the stock. b. On June 30, 2017, C Company paid dividends of $3.00 per share. Prepare the journal entry that would be.

Homework Answers
15 Views
  • 112.On January 3, 2017, Nancy Corporation purchased the following equity
  • Accounting
Homework Answers
View Answer

110.Refer to Exhibit 14-11. Interest expense for 2016 will be a. $1,750. b. $1,800. c. $1,850. d. $1,900. 111.Refer to Exhibit 14-11. The journal entry to record the reacquisition of the bonds will include a a. debit to Loss on Bond Redemption for $5,100. b. credit to Gain on Bond Redemption for $5,000. c. debit to Discount on Bonds Payable for $1,100. d. debit to Loss on.

Homework Answers
17 Views
  • 110.Refer to Exhibit 14-11. Interest expense for 2016 will be a.
  • Accounting
Homework Answers
View Answer

108.First Bank purchased the following securities during 2017 and classified them all as trading securities. ? ? ? ? ? ? Purchased 500 shares of Duke Company's common stock for $55 per share Purchased 2,000 shares of Queen Company's common stock for $45 per share Purchased 1,000 shares of Prince Company's preferred stock at $120 per share. Received $3,000 of.

Homework Answers
15 Views
  • 108.First Bank purchased the following securities during 2017 and classified
  • Accounting
Homework Answers
View Answer

Can't find what you're looking for ?

Ask our exprts a study questions, on us.
Get free Homework Help*