On January 1, 2015, Piper Co. issued ten-year bonds with a face value of $3,000,000 and a stated interest rate of 10%, payable semiannually on June 30 and December 31. The bonds were sold to yield 12%. Calculate the issue price of the bonds.
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Which of these cycles would you, as an auditor, spend more time with? Would you suspect more misstatements in the revenues and collection cycle or in the purchases and payments cycle? Why? Give some examples to support you opinion.
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Lloyd Company earns 6% on an investment that will return $450,000 eight years from now. What is the amount Lloyd should invest now to earn this rate of return, rounded to whole dollars
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If the assets of a business are $240,000 and the liabilities are $80,000, how much is the owners’ equity? If the owners’ equity in a business is $160,000 and the liabilities are $130,000, how much are the assets?
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a local engineering firm is bidding on a design project for a new client. the total budgeted direct-labor costs for the
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In 2013, Colin's personal residence was damaged by fire. Colin was insured for 80% of his actual loss, and he received the insurance settlement. Colin had adjusted gross income, before considering the casualty item, of $40,000. Pertinent data with re..
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Andrew has purchased a new car. He wishes to set aside enough money in a bank account to pay the maintenance for the first 5 years. It has been estimated that the maintenance cost of a car is as follows: Assume the maintenance costs occur at the end ..
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Lowden Company has an overhead application rate of 158% and allocates overhead based on direct material cost. During the current period, direct labor cost is $52,000 and direct materials used cost $82,000. Determine the amount of overhead Lowden Comp..
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Roger Jones sells real estate on March 2 for $512,000. The buyer, JJ Baker, pays the real estate taxes of $10,400 for the calendar year, which is the real estate property tax year. Determine the real estate taxes apportioned to and deductible by for ..
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A project under consideration has a net present value of $10,000 for a required investment of $60,000. There are no other investment options at this time. However, the assumed discount rate used to calculate the net present value is 20%.
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McLinden Corp. is considering financing $10,000,000 of its upcoming operations by issuing equity and bonds. McLinden is considering issuing $1,000,000 of 10%, $10 par Preferred stock, $4,000,000 of $1 par Common stock, and $5,000,000 of 12% 5 year bo..
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At the beginning of the year, Lambert Motors issued the three notes described below. Interest is paid at year-end. (FV of $1, PV of $1, FVA of $1, PVA of $1, FVAD of $1 and PVAD of $1). The company issued a two-year, 10%, $610,000 note in exchange fo..
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