[cadytail]

On Jan. 1 2004 May co. sold to Day Corp. $1,000,000 of its 10% bonds for $885,295 to yield 12%. Interest is payable semiannually on Jan 1 and July 1. What amount should May report as interest expense for thie six months ended June 30, 2004?

On Ja. 1, 2004, Grant Co. issued ten year bonds with a face amount of $5,000,000 and a stated interest rate of 8% paybable annually on Jan. 1. The bonds were priced to yield 10%. Present value factors are as follows:

8% 10%
value of 1 for 10 periods .463 .386

Present value of an ordianary
annuity of 1 for 10 periods 6.710 6.145

The total issue price of the bonds was?

If $12,000 is deposited annually starting on Jan. 2004 and it earns 8% what will the balance be on Dec. 31, 2011?

Gore co. financed the purchase of a machine by making payments of $12,000 at the end of each of five years. The appropriate rate of interest was 8%. The future value of one for five periods at 8% is 1.46933. The future value of an ordinary annuity for five periods at 8% is 5.8666. The present value of an ordinary annuity for five periods at 8% is 3.99271. What was the cost of the machine to Gore?

On July 1, 2004, Wyatt signed an agreement to operate as a franchisee of Kwik Foods. For an initial franchise fee of $120,000. Of this amount, $40,000 was paid when the agreement was signed and the balance is payable in four equal annual payments of $20,000 beginning July 1, 2005. The agreement provides that the down payment is not refundable and no future services are required of the franchisor. Wyatt's credit rating indicates that he can borrow money at 14% for a loan of this type. Information on present and future value factors is as follows.

Present value of 1 at 14% for 4 periods is .59
Future value of 1 at 14% for 4 periods is 1.69
Present value of an ordinary annuity of 1 at 14% for 4 periods is 2.91

Wyatt should record the acquisition cost of the franchise on July 1, 2004 at:

a. 87,000
b. 98,200
c. 120,000
d. 135,200

In preparing its May 31, 2004 baconciliation, Dogg Co. has the following info available:

Bal. per bank stmt, 5/31/04 $27,000
Deposit in transit, 5/31/04 5,400
Outstanding checks, 5/31/04 4,900
Note collected by bank in May 1,250

The correct balance of cash at May 31, 2004 is:

a. 32,400
b. 26,250
c. 27,500
d. 28,750

Linn Co. allowance for uncollectible accounts was $184,000 at the end of 2004 and $180,000 at the end of 2003. For the year ended Dec. 31, 2004, Linn reported bad debt expense of $26,000 in its income stmt. What amount did Linn debit to the appropriate account in 2004 to write off actual bad debts?

a. 4,000
b. 22,000
c. 26,000
d. 30,000

The category "trade receivables" includes:

a. advances to officers and employees

b. income tax refunds receivable

c. claims against insurance companies for casualties sustained

e. none of these

Dane Co received merchandise on consignment. As of March 31, Dane had recorded the transaction as a purchase and included the goods in inventory. The effect of this on its financial statements for March 31, would be:

a. no effect

b. net income was correct and current assets and current liabilities were overstated.

c. net income, current assets, and current liabilities were overstated.

d. net income and current liabilities were overstated.

When using a perpetual inventory system:

a. no purchases account is used.

b. a cost of goods sold accoun is used.

c. two entries are required to record a sale

d. all of these

an inventory pricing procedure in which the oldest costs incurred rarely have an effect on the ending inventory valuation is:

a. FIFO

B. LIFO

c. Base stock

D. weighted average

Dextter is a calendar year corp. Its financial stmt. For the years 2004 and 2003 contained errors as follows:

2004 2003

Ending inventory 8,000 overstated 14,000 overstated
Depreciation exp. 4,000 understated 16,000 overstated

Assume that no correcting entries were made at Dec. 31, 2003 or Dec. 31, 2004, and thaqt no additional errors occurred in 2005. Ignoring income taxes, by how much will working capital at De. 31, 2005 be overstated or understated?

a. 0

b. 8,000 overstated

c. 8,000 understated

d. 6,000 understated

[minmin6666]

Linn Co.'s allowance for uncollectible accounts was $184,000 at the end of 2004 and $180,000 at the end of 2003.

[morgaine300]

minmin6666, we're not here to just do people's homework for them and give answers away without them attempting to do their own work. Please don't do this. (Especially since it's obvious you just took the difference of 180K and 184K and don't know how to do the problem.) This is our guidelines for homework problems:

https://www.askmehelpdesk.com/financ...-b-u-font.html

Not to mention the thread is 2 years old.

[fayegcsu]

I am confused on how to figure out preferred dividends