The Ashley Corporation purchased $600,000 of 4%, 5-year bonds at 97 on January 1, 2014. Interest is to be paid semiannually on January 1 and July 1. This is a held-to-maturity investment. This company uses the straight-line method to amortize any premiums
举一反三
- A company issued 5-year, 7% bonds with a par value of $100,000. The market rate when the bonds were issued was 6.5%. The company received $101,137 cash for the bonds. Using the straight-line method, the amount of recorded interest expense for the first semiannual interest period is: A: $3,386.30. B: $3,500.00. C: $3,613,70. D: $6,633.70. E: $7,000.00.
- On<br/>January 1, 2014, Portwell Company purchased a equipment for $210,000.<br/>They estimate a useful life of 4 years, residual value is $10,000. <br/>At the end of 2014, the balance in the equipment account will be:( <br/>) A: $200,000 B: $210,000 C: $150,000 D: $160,000
- Guanghai Co. was organized on January 1, 2012 and issued 200 000 shares of common stock on that date. On July 1, an additional 100 000 shares were issued for cash. Net income for the year was 600 000 yuan. Net earnings per share amounted to A: 3.00 yuan. B: 2.50 yuan. C: 2.40 yuan. D: 2.00 yuan.
- Australia Day is celebrated every year on ( ). A: January 6 B: January 26 C: July 26 D: January 16
- Caprice Corporation was organized on January 1 and issued 500,000 shares of common stock on that date. On July 1, an additional 200,000 shares were issued for cash. Net income for the year was $1,440,000. Net earnings per share amounted to A: $2.88. B: $2.50. C: $2.06. D: $2.40.