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Chart of accounts for exact wording of account titles
: On the first day of the fiscal year, a company issues $35,000, 9%, five-year installment notes that have annual payments of $8,998. The first note payment consists of $3,150 of interest and $5,848 of principal repayment. Journalize the following tran..
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Calculate the times interest earned ratio
: Sales are $1.5 million, cost of goods sold is $600,000, depreciation expense is $150,000, other operating expenses is $300,000, addition to retained earnings is $146,250, dividends per share is $1, tax rate is 30 percent, and number of shares of comm..
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Journalize the redemption of the bonds
: On December 31, a $1,850,000 bond issue on which there is an unamortized discount of $74,900 is redeemed for $1,799,500. Journalize the redemption of the bonds.
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General building supplies to building contractors
: Carter Lumber sells lumber and general building supplies to building contractors in a medium-sized town in Montana. Data regarding the store's operations follow: o Sales are budgeted at $380,000 for November, $390,000 for December, and $400,000 for J..
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Calculate the times interest earned ratio
: Sales are $1.5 million, cost of goods sold is $600,000, depreciation expense is $150,000, other operating expenses is $300,000, addition to retained earnings is $146,250, dividends per share is $1, tax rate is 30 percent, and number of shares of comm..
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Calculate the value of cash and marketable securities
: Mandesa, Inc., has current liabilities of $8 million, current ratio of 2 times, inventory turnover of 12 times, average collection period of 30 days, and credit sales of $64 million. Calculate the value of cash and marketable securities.
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Prepare the journal entry to record the interest earned
: On July 1, 2014, Salt Mine Corporation purchased at par 8% bonds having a maturity value of $250,000. The bonds are dated July 1, 2014, and mature July 1, 2019, with interest payable on July 1 of each year. The bonds are classified in the held-to-mat..
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Minimum working capital strategy
: When the length of the financing is directly related to the life of the asset being financed, the firm is said to follow a: policy of maturity matching. restrictive financing strategy. matched depreciation strategy. minimum working capital strategy.
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Determine the earnings per share on common stock
: Miller Co., which produces and sells skiing equipment, is financed as follows: Bonds payable, 10% (issued at face amount) $550,000 Preferred $1 stock, $10 par 550,000 Common stock, $25 par 550,000 Income tax is estimated at 40% of income. Determine t..
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