Question 1

On April 1 of the current year, a company paid $150,000 to purchase 7%, 10-year bonds that had a par value of $150,000 and paid interest semiannually each April 1 and October 1. The company intends to hold the bonds until they mature. Prepare the journal entry to record the receipt of the first semiannual interest payment on October 1 of the current year.

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Question 2

Explain how transactions (both sales and purchases) in a foreign currency are recorded and reported.

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Question 3

A company had net income of $76,000 in 2012 and $88,000 in 2013. Its net sales were $640,000 in 2012 and $611,000 in 2013. Its average total assets in 2012 were $670,000 and $712,000 in 2013. Calculate the profit margin, total asset turnover, and return on total assets for both years. Comment on the results.

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Question 4

Define the return on total assets and explain how it is used to measure a company's financial performance.

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Question 5

A company reported net income of $100,000 and average total assets of $425,000. Calculate its return on total assets.

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Question 6

A company had net income of $45,000, net sales of $390,000, and average total assets of $250,000 for the current year. Calculate this company's profit margin, total asset turnover, and return on total assets.

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Question 7

Define the foreign exchange rate between two currencies. Explain its effect on business transactions conducted in a foreign currency.

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Question 8

A company reported net income of $275,000, net sales of $2,500,000, and average total assets of $2,100,000 for the current year. Calculate this company's profit margin, total asset turnover, and return on total assets.

Accepted Answer

The answer of A company reported net income of $275,000,...

Question 9

On April 1 of the current year, a company paid $150,000 to purchase 7%, 10-year bonds that had a par value of $150,000 and paid interest semiannually on October 1 and April 1. The company intends to hold the bonds until they mature. Prepare the journal entry to record the receipt of the semiannual interest payment on April 1 of the following year.

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Question 10

Identify the three types of classifications for noninfluential investments in securities.

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Question 11

Explain how held-to-maturity debt securities are accounted for at and after acquisition and how they are reported in the financial statements.

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Question 12

Explain how to record the sale of trading securities.

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Question 13

A company had net income of $450,000 in 2012 and $620,000 in 2013. The company had average total assets of $2,500,000 in 2012 and $3,000,000 in 2013. Calculate the return on total assets for 2012 and 2013. Comment on the results.

Accepted Answer

The answer of A company had net income of $450,000...

Question 14

On April 1 of the current year, a company paid $150,000 cash to purchase 7%, 10-year bonds that had a par value of $150,000 and paid interest semiannually each April 1 and October 1. The company intends to hold these bonds until they mature. Prepare the journal entry to record the purchase of the bond.

Accepted Answer

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Question 15

Explain how investors report investments in equity securities when the investor has a controlling influence over an investee.

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Question 16

Explain how equity securities having significant influence are accounted for and reported in the financial statements. Include a discussion of the criterion for these securities in terms of an investee's voting stock.

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Question 17

A company reported net income for 2012 of $98,000 and $106,000 in 2013. It also reported net sales of $735,000 in 2012 and $798,000 in 2013. The company's average total assets in 2012 were $1,850,000 and $1,720,000 in 2013. Calculate this company's profit margin, total asset turnover, and return on total assets for 2012 and 2013. Comment on the results.

Accepted Answer

The answer of A company reported net income for 2012...

Question 18

On April 1 of the current year, a company paid $150,000 to purchase 7%, 10-year bonds that had a par value of $150,000 and paid interest semiannually on October 1 and April 1. The company intends to hold the bonds until they mature. Prepare the journal entry to recognize accrued interest as of December 31 of the current year.

Accepted Answer

The answer of On April 1 of the current year,...

Question 19

A company paid $500,000 for 12% bonds with a par value of $500,000. The bonds pay 6% interest semiannually on September 1 and March 1. The company intends to hold the bonds until they mature. Prepare the journal entries for the following dates and transactions related to this bond acquisition.
(1) Bonds purchased on September 1, 2012.
(2) Year-end adjusting entry, December 31, 2012.
(3) Receipt of semiannual interest March 1, 2013.
(4) Redemption of the bonds at maturity on August 31, 2019.

Accepted Answer

The answer of A company paid $500,000 for 12% bonds...

Question 20

Marina, Inc., held 1,500 of Navia common stock with a cost of $36,900. These shares were classified as a long-term available-for-sale investment. It sold the shares on December 13 for $42,100. Prepare the necessary journal entry to record this sale.

Accepted Answer

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Quiz 15: Investments and International Operations

Explain how transactions (both sales and purchases) in a foreign currency are recorded and reported.

Define the return on total assets and explain how it is used to measure a company's financial performance.

A company reported net income of $100,000 and average total assets of $425,000. Calculate its return on total assets.

A company had net income of $45,000, net sales of $390,000, and average total assets of $250,000 for the current year. Calculate this company's profit margin, total asset turnover, and return on total assets.

Define the foreign exchange rate between two currencies. Explain its effect on business transactions conducted in a foreign currency.

A company reported net income of $275,000, net sales of $2,500,000, and average total assets of $2,100,000 for the current year. Calculate this company's profit margin, total asset turnover, and return on total assets.

Identify the three types of classifications for noninfluential investments in securities.

Explain how held-to-maturity debt securities are accounted for at and after acquisition and how they are reported in the financial statements.

Explain how to record the sale of trading securities.

A company had net income of $450,000 in 2012 and $620,000 in 2013. The company had average total assets of $2,500,000 in 2012 and $3,000,000 in 2013. Calculate the return on total assets for 2012 and 2013. Comment on the results.

Explain how investors report investments in equity securities when the investor has a controlling influence over an investee.

Explain how equity securities having significant influence are accounted for and reported in the financial statements. Include a discussion of the criterion for these securities in terms of an investee's voting stock.

Marina, Inc., held 1,500 of Navia common stock with a cost of $36,900. These shares were classified as a long-term available-for-sale investment. It sold the shares on December 13 for $42,100. Prepare the necessary journal entry to record this sale.