[mycutieface]

I really don't know how to solve this... please teach me how. Id appreciate any info... thanks so much.

On January 1 of year 1, DrumLine Airways issued $3,500,000 of par value bonds for $3,200,000. The bonds pay interest semi annually on Jan 1 and July 1.The contract rate of interest is 7% while the market rate of interest for similar bonds is 8%. The bond premium or discount is being amortized at a rate of $10,000 every six months. The company's Dec 31, Year 1 balance sheet should reflect total liabilities associated with the bond issue in the amount of:

a. $3,342,500
b. $3,097,500
c. $3,780,000
d. $3,902,500
e. $3,220,000

[mycutieface]

Adidas issued 10-year, 8% bonds with a par value of $200,000. Interest is paid semi-annually. The market rate on the issue date was 7.5%. Adidas received $206, 948 in cash proceeds. Which of the following statements is true?

a. Adidas must pay $200,000 at maturity plus 20 interest payments of $8,000 each
b. Adidas must pay $200,000 at maturity and no interest payments.
c. Adidas must pay $206.948 at maturity and no interest payments.
d. Adidas must pay $200,000 at maturity plus 20 interest payments of $7,500 each
e. Adidas must pay $206,948 at maturity plus 20 interest payments of $8,000 each

any help will be greatly appreciated. ^^ thank u so much.

[mycutieface]

Rosser Company sold supplies in the amount 25,000 euros to a French company when the exchange rate was $1.21 per euro. At the time of payment, the exchange rate decreased to $0.82. Rosser must record a:

a. loss of $20,500
b. neither a gain or loss
c. gain of $20,500
d. loss of $9,750
e. gain of $9,750

[mycutieface]

Morgan company purchased 2,000 shares Asta's common stock for $143,000 as a long-term investment. This investment is considered available-for-sale. The par value of the stock was $1 per share. Morgan paid $375 in commissions on the transaction. The entry to record the transaction would include a:

a. Debit to long-term investments for $ 143,000
b. Credit to Common Stock for $143,375
c. Credit to Common Stock for $2,000
d. Credit to Common Stock for $143,000
e. Debit to long-term investments for $143,375

[mycutieface]

If a company owns more than 20% of the stock of another company and the stock is being held as a long-term investment, which method would the investor normally use to account for this investment?

a. Historical cost method
b. Market value method
c. Effective method
d. Straight-line method
e. Equity Method

[mycutieface]

Micron owns 35% of Martok. Martok pays a total of $47,000 dollars in cash dividends for the period. Micron's entry to record the dividend transaction would include a:

a. Debit to Cash for $47,000
b. Credit to Long Term Investment for $16,450
c. Credit to Investment revenue for $47,000
d. Debit to Long Term Investments for $16,450
e. Credit to Cash for $16,450


thanks so much if you could help me. Highly appreciated ^^

[mycutieface]

Paris Corporation purchased 40% of Samitz Corporation for $100,000 on Jan 1. On Nov 17 of the same year, Samitz Corporation declared total cash dividends of $12,000. At year end, Samitz corporation reported net income of $60,000. The balance in the Paris Corporation's Long-Term Investment in Samitz Corporation at December 31, should be:

a. $119,200
b. $124,000
c. $100,000
d. $95.200
e. $80.800


Thanks so much for your help!!

[Curlyben]

Thank you for taking the time to copy your homework to AMHD.
Please refer to this announcement: Ask Me Help Desk - Announcements in Forum : Homework Help

[mycutieface]

Everrine Corporation owns 3,000 shares of JRW Corporation. JRW Corporation has 25,000 shares of stock outstandings. JRW paid $4 per share in cash dividends to its stockholders. The entry to record the receipt of these dividends is:

a. > Debit Cash $12,000; credit Long-Term investments $12,000.
b. > Debit Long-Term Investments $12,000; credit Cash $12,000
c. > Debit Cash $12,000; Credit Interest Revenue $12,000.
d. > Debit Unrealized Gain-Equity $12,000; Credit Cash $12,000
e. > Debit Cash $12,000; credit Unrealized Gain-Equity $12,000