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Working Capital and Current Ratio Using the following information, compute (1) working capital and (2) current ratio. Deferred sales...

Bond Issuance and Adjusting Entries On January 1, 2008, Encino Company issued bonds with a face value of $1,000,000 and a maturity date of December 31, 2017. The bonds have a stated interest rate of 8%, payable on January 1 and July 1. They were sold to Sea Ray...

Computation of Bond Market Price and Amortization of Premium or Discount Signal Enterprises decided to issue $900,000 of 10 year bonds. The interest rate on the bonds is stated at 7%, payable semiannually. At the time the bonds were sold, the market rate had increased...

Cash Flow Effects of a Bond Premium On January 1, 2008, Data link Inc. issued $100,000,10%,10 year bonds when the market rate of interest was 8%. Interest is payable on June 30 and December 31. The following financial information is available:...

Bond Entries—Issuer Greenwood Company sold $4,000,000 of 7% first mortgage bonds on October 1, 2000, at $3,479,683 plus accrued interest. The bonds were dated July 1, 2000; interest payable semiannually on January 1 and July 1; redeemable after June 30, 2005, to June...

Bond Entries—Investor On June 1, 2007, Sunderland Inc. purchased as a long term investment 400 of the $1,000 face value, 8% bonds of Stateline Corporation for $364,547. The bonds were purchased to yield 10% interest. Interest is payable semiannually on December 1 and...

Bond Entries—Investor On May 1, 2005, Glacier Bay Co. acquired $30,000 of Horizon Corp. 8% bonds at 97 plus accrued interest. Interest on bonds is payable semiannually on March 1 and September 1, and bonds mature on September 1, 2008. On May 1, 2006, Glacier Bay Co....

Note Payable Entries—Investor and Issuer Fitzgerald Inc. issued $750,000 of 8 year, 11% notes payable dated April 1, 2004. Interest on the notes is payable semiannually on April 1 and October 1. The notes were sold on April 1, 2004, to an underwriter for $720,000 net...

Reacquisition of Bonds Gerona Company authorized the sale of $300,000 of 10%, 10 year debentures on January 1, 2003. Interest is payable on January 1 and July 1. The entire issue was sold on April 1, 2003, at 103 plus accrued interest. On April 1,2008,$100,000 of the...