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(2-sets)
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2)-Without prejudice to your solution in part (a), assume that the issue price was $2,652,000.
Prepare the amortization table for 2015, assuming that amortization is recorded on interest
payment dates using the effective-interest method.
Compute (assume no changes in balances during the past year): (Round per share and ratios
to 2 decimal places, e.g. $15.75 or 15.75%.)
(a)- Total amount of stockholders' equity in the balance sheet-- $
4)-Sisco Co. purchased a patent from Thornton Co. for $620,000 on July 1, 2012.
Expenditures of $119,000 for successful litigation in defense of the patent were paid on July
1, 2015. Sisco estimates that the useful life of the patent will be 20 years from the date of
acquisition.
-Prepare a computation of the carrying value of the patent at December 31,- 2015. -
5)-On August 31, Latty Co. partially refunded $401,000 of its outstanding 10% note payable
made one year ago to Dugan State Bank by paying $401,000 plus $40,100 interest, having
obtained the $441,100 by using $126,240 cash and signing a new one-year $346,000 note
discounted at 9% by the bank.
6)-Make the entry to record the partial refunding. Assume Latty Co. makes reversing
entries when appropriate. (Credit account titles are automatically indented when the
amount is entered. Do not indent manually.)
6)
7)-Prepare the adjusting entry at December 31, assuming straight-line amortization of the
discount. (Credit account titles are automatically indented when the amount is entered. Do
not indent manually.)
-
ACC 304 Final Exam Part 2 (2 Sets)
Compute (assume no changes in balances during the past year): (Round per share and ratios
to 2 decimal places, e.g. $15.75 or 15.75%.)
(a)- Total amount of stockholders' equity in the balance sheet-- $
2)-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%. Table values are:
-- Present value of 1 for 10 periods at 10%---.386
-- Present value of 1 for 10 periods at 12%---.322
-- Present value of 1 for 20 periods at 5%-.377
Present value of 1 for 20 periods at 6%- .312
Present value of annuity for 10 periods at 10%- 6.145
Present value of annuity for 10 periods at 12%- 5.650
Present value of annuity for 20 periods at 5%- 12.462
Present value of annuity for 20 periods at 6%- 11.470
4)-Without prejudice to your solution in part (a), assume that the issue price was $2,652,000.
Prepare the amortization table for 2015, assuming that amortization is recorded on interest
payment dates using the effective-interest method.
5)-Sisco Co. purchased a patent from Thornton Co. for $620,000 on July 1, 2012. Expenditures of
$119,000 for successful litigation in defense of the patent were paid on July 1, 2015. Sisco
estimates that the useful life of the patent will be 20 years from the date of acquisition.
Prepare a computation of the carrying value of the patent at December 31, 2015.
6)-On August 31, Latty Co. partially refunded $443,000 of its outstanding 10% note payable made
one year ago to Dugan State Bank by paying $443,000 plus $44,300 interest, having obtained the
$487,300 by using $134,220 cash and signing a new one-year $388,000 note discounted at 9% by
the bank.
7)-Make the entry to record the partial refunding. Assume Latty Co. makes reversing entries when
appropriate. (Credit account titles are automatically indented when the amount is entered. Do not
indent manually.)
8)-Prepare the adjusting entry at December 31, assuming straight-line amortization of the
discount. (Credit account titles are automatically indented when the amount is entered. Do not
indent manually.)
- Date Account Titles and Explanation- Debit Credit