Question
In: Accounting
2.Amortizing a discount on along−termbond investment willcause: A.the interest revenue reported on the income statement to...
2.Amortizing a discount on along−termbond investment willcause:
A.the interest revenue reported on the income statement to equal the cash received by the investor
B.the cash received by the investor to exceed the interest revenue reported on the income statement
C.the interest revenue reported on the income statement to exceed the cash received by the investor
D.the interest revenue reported is not related to the cash received by the investor
3.When a premium on a bond investment is amortized by the company holding the investment:
A.the amount of cash received as an interest payment will be increased
B.the amount of cash received as an interest payment will be reduced
C.Interest Revenue will be debited
D.companies normally credit a separate account called Premium on Investments
4.When a parent acquires 100% of the voting stock of asubsidiary, that subsidiary:
A.automatically becomes part of one large legal entity that consists of the parent and the subsidiary together
B.ceases to exist as a separate legal entity, but it is still accounted for as a separate accounting entity
C.lives on as a separate legal entity
D.continues to exist as an accounting entity, but it ceases to exist in any legal form
Solutions
ekkarill92 answered 1 year agoRelated Solutions
Dividend revenue and interest revenue are reported in the income statement as a component of a...
Dividend revenue and interest revenue are reported in the income
statement as a component of a company's net income
True or False
On the income statement of a merchandising company, interest income and interest expense are reported: Select...
On the income statement of a merchandising company, interest
income and interest expense are reported:
Select one:
A. As part of cost of goods sold
B. As separate items of other income and expense below the net
operating income or loss
C. By showing interest income as additional sales revenue and
interest expense as an operating expense
D. By offsetting interest income and interest expense and
showing the excess as an operating revenue or expense
What is the difference between gain and revenue? Are they reported differently on the income statement?
What is the difference between gain and revenue? Are
they reported differently on the income
statement?
aughn Manufacturing reported these income statement data for a 2-year period. 2017 2016 Sales revenue $246,700...
aughn Manufacturing reported these income statement data for a
2-year period. 2017 2016 Sales revenue $246,700 $190,450 Beginning
inventory 43,240 35,100 Cost of goods purchased 211,980 173,640
Cost of goods available for sale 255,220 208,740 Less: Ending
inventory 56,720 43,240 Cost of goods sold 198,500 165,500 Gross
profit $48,200 $24,950 Vaughn Manufacturing uses a periodic
inventory system. The inventories at January 1, 2016, and December
31, 2017, are correct. However, the ending inventory at December
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The Hill Company reported the following results: Year 3 Year 2 Year 1 Income Statement Revenue...
The Hill Company reported the following results:
Year 3
Year 2
Year 1
Income Statement
Revenue
10,972
11,598
10,470
Cost of Goods Sold
8,942
8,767
7,901
Selling, General & Admin. Expenses
2,470
2,611
2,479
Interest expense
76
80
28
Net Income
(516)
140
62
Balance Sheet
Assets
Cash
1,354
1,316
1,880
Prepaid expenses
202
522
125
Accounts receivable
375
250
231
Inventory
745
698
455
Property & equipment (net)
20,464
18,810
17,727
Total Assets
23,140
21,596
20,418
Liabilities
Accounts payable...
Forecasting A) Dexter Company reported the following 2018 income statement Total revenue $13,256,500 Cost of revenue...
Forecasting
A) Dexter Company reported the
following 2018 income statement
Total revenue
$13,256,500
Cost of revenue
7,066,300
Gross profit
6,190,200
Selling and administrative expenses
3,758,200
Operating income
2,432,000
Interest expense
572,800
Income before income taxes
1,859,200
Income tax expense
687,905
Net income
$ 1,171,295
Forecast Dexter’s income statement assuming a 5% increase in
sales, a 17% effective tax rate, and a continuation of the 2018
percentage relation to net sales for expenses except for interest
where the company...
Lui Company's 2010 income statement reported total sales revenue of $350,000.
Lui Company's 2010 income statement reported total sales revenue
of $350,000. The 2009-2010 comparative balance sheets showed that
accounts receivable increased by $20,000. The 2010 "cash receipts
from customers" would be: (2 points) a. $270,000 b. $250,000 c.
$330,000 d. $40,000
Bond Discount, Entries for Bonds Payable Transactions, Interest Method of Amortizing Bond Discount On July 1,...
Bond Discount, Entries for Bonds Payable Transactions, Interest
Method of Amortizing Bond Discount
On July 1, 20Y1, Livingston Corporation, a wholesaler of
manufacturing equipment, issued $30,000,000 of 20-year, 11% bonds
at a market (effective) interest rate of 14%, receiving cash of
$24,001,800. Interest on the bonds is payable semiannually on
December 31 and June 30. The fiscal year of the company is the
calendar year.
Required:
For all journal entries, if an amount box does not require an
entry, leave...
Bond Discount, Entries for Bonds Payable Transactions, Interest Method of Amortizing Bond Discount On July 1,...
Bond Discount, Entries for Bonds Payable Transactions, Interest
Method of Amortizing Bond Discount On July 1, 20Y1, Livingston
Corporation, a wholesaler of manufacturing equipment, issued
$37,000,000 of 20-year, 11% bonds at a market (effective) interest
rate of 14%, receiving cash of $29,602,220. Interest on the bonds
is payable semiannually on December 31 and June 30. The fiscal year
of the company is the calendar year. Required: For all journal
entries, if an amount box does not require an entry, leave...
What would cause changes in income taxes and interest expoense on a common sized income statement?
What would cause changes in income taxes and interest expoense
on a common sized income statement?
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