Financial Accounting (5th Edition) (What's New in Accounting)
5th Edition
ISBN: 9780134727790
Author: Robert Kemp, Jeffrey Waybright
Publisher: PEARSON
expand_more
expand_more
format_list_bulleted
Concept explainers
Videos
Textbook Question
Chapter 8, Problem 16SE
Other long term assets (Learning Objective 8) 5-10 min.
Classify each of the following as:
Trading security (T)
Available-for-sale security (A)
Held-to-maturity security (H)
None of the above (N)
_______ 1. A bond that management plans on owning until it is repaid; management does not believe it will need to sell the bond to generate cash before the bond’s scheduled maturity date
________ 2. Land that management is holding as an investment
________ 3. Intel stock that company management plans on selling quickly as soon as its price is 10 percent more than what the company paid at the time it purchased the stock
________ 4. Ford Motor Company stock; management does not actively manage this stock and intends to sell it only if it needs to generate cash
________ 5. A bond that management plans on owning until it is repaid; however, management believes it may have to sell the bond within the year in order to provide enough cash for operations
________ 6. inventory that management intends to sell within the year
Expert Solution & Answer
Want to see the full answer?
Check out a sample textbook solution
Students have asked these similar questions
12) Which of the following is NOT a property of Financial assets?
A. Divisibility
B. Reversibility
C. Convertibility
D. Marketability
13) Which of the following security is issued in money market:
A. Common stock
B. Preferred stock
C. Bankers acceptance
D. Commercial bonds
14) The money market is used to issue securities that maturity in:
A. One year
B. Two years
C. Three years
D. Four years
15) The capital market is used to issue securities that maturity in:
A. 3 months
B. 6 months
C. 9 months
D. 15 months
16) All the following factors contribute to the integration of the financial market:
A. Liberalization
B. Technology
C. Institutionalization
D. Democratization
17) Which money market instrument is infrequently traded in the Secondary Market:
A. Treasury bills
B. Commercial paper
C. Certificate of deposit
D. Repurchase agreement
Bond (Held-to-Maturity)Investment
Journalize the entries to record the following selected bond investment transactions for Marr Products:
If an amount box does not require an entry, leave it blank.
D.) Received face value of remaining bonds at their maturity.
Cash-
Investments- Hotline Inc. Bonds-
I just need help with part D, Thanks!
6. This is a financial security that evidences your right to be paid with
interest and principal during specified due dates?
a. Bonds
b. Preferred shares
c. Common shares
d. Option to buy bonds
e. None of the above
Chapter 8 Solutions
Financial Accounting (5th Edition) (What's New in Accounting)
Ch. 8 - Prob. 1DQCh. 8 - Prob. 2DQCh. 8 - Prob. 3DQCh. 8 - What is depreciation, and why is it used in...Ch. 8 - Prob. 5DQCh. 8 - Which depreciation method would be moot...Ch. 8 - Prob. 7DQCh. 8 - Prob. 8DQCh. 8 - Prob. 9DQCh. 8 - Prob. 10DQ
Ch. 8 - Prob. 1SCCh. 8 - Prob. 2SCCh. 8 - How should a capital expenditure for a long-term...Ch. 8 - Which depreciation method usually produces the...Ch. 8 - Prob. 5SCCh. 8 - Prob. 6SCCh. 8 - Prob. 7SCCh. 8 - Prob. 8SCCh. 8 - Prob. 9SCCh. 8 - Prob. 10SCCh. 8 - Prob. 11SCCh. 8 - Prob. 12SCCh. 8 - Prob. 1SECh. 8 - Long-term asset terms (Learning Objective 1) 5-10...Ch. 8 - Prob. 3SECh. 8 - Lump-sum purchase (Learning Objective 2) 5-10 min....Ch. 8 - Errors in accounting for long-term assets...Ch. 8 - Concept of depreciation (Learning Objective 3)...Ch. 8 - Depreciation methods (Learning Objective 3) 10-15...Ch. 8 - Depreciation methods (Learning Objective 3) 10-15...Ch. 8 - Prob. 9SECh. 8 - Prob. 10SECh. 8 - Prob. 11SECh. 8 - Prob. 12SECh. 8 - Prob. 13SECh. 8 - Prob. 14SECh. 8 - Prob. 15SECh. 8 - Other long term assets (Learning Objective 8) 5-10...Ch. 8 - Prob. 17SECh. 8 - Prob. 18AECh. 8 - Prob. 19AECh. 8 - Prob. 20AECh. 8 - Prob. 21AECh. 8 - Depreciation methods (Learning Objective 3) 15-20...Ch. 8 - Prob. 23AECh. 8 - Prob. 24AECh. 8 - Prob. 25AECh. 8 - Prob. 26AECh. 8 - Prob. 27AECh. 8 - Prob. 28AECh. 8 - Prob. 29AECh. 8 - Prob. 30AECh. 8 - Prob. 31AECh. 8 - Prob. 32BECh. 8 - Prob. 33BECh. 8 - Prob. 34BECh. 8 - Prob. 35BECh. 8 - Prob. 36BECh. 8 - Prob. 37BECh. 8 - Prob. 38BECh. 8 - Prob. 39BECh. 8 - Prob. 40BECh. 8 - Prob. 41BECh. 8 - Prob. 42BECh. 8 - Prob. 43BECh. 8 - Prob. 44BECh. 8 - Prob. 45BECh. 8 - Long-term asset costs and partial-year...Ch. 8 - Journalizing long-term asset transactions...Ch. 8 - Prob. 48APCh. 8 - Prob. 49APCh. 8 - Prob. 50APCh. 8 - Prob. 51APCh. 8 - Prob. 52APCh. 8 - Prob. 53BPCh. 8 - Journalizing long-term asset transactions...Ch. 8 - Prob. 55BPCh. 8 - Prob. 56BPCh. 8 - Prob. 57BPCh. 8 - Prob. 58BPCh. 8 - Prob. 59BPCh. 8 - Prob. 1CECh. 8 - Prob. 1CPCh. 8 - Continuing Financial Statement Analysis Problem...Ch. 8 - Prob. 1EIACh. 8 - Prob. 2EIACh. 8 - Financial Analysis Purpose: To help familiarize...Ch. 8 - Prob. 1IACh. 8 - Prob. 1SBACh. 8 - Written Communication A client of yours notified...
Knowledge Booster
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.Similar questions
- Q7arrow_forwardCan you pleas provide clear answers for B, convexity and duration.Thank you for your time. Question 3. Bond Consider a bank with the following balance sheet (M means million): Assets Value Duration of the Asset Convexity of the Asset5yr bond bought at a yield of 3.4% (lending money) $550M 4.56212.02612yr bond bought at a yield of 4% (lending money) $800M 9.45353.565 Liabilities Value Duration of the Liability Convexity of the Liability2yr bond sold at a yield of 2.4% (borrowing money) $300M 1.941 2.3844yr bond sold at a yield of 2.8% (borrowing money) $500M 3.759 8.206 a) Calculate the equity (total asset – total liability) to asset ratio of the bank (Hint: equity to asset ratio = total equity/total asset) b) Calculate the duration and convexity of the both asset and liability sides;arrow_forwardPass through securities alleviate risk from their balance sheets by O A. Keeping the mortgages on their balance sheet B. Removing mortgages from their balance sheets C. Hedging risks by using forwards & futures contracts O D. Allowing borrowers to foreclose on their mortgagesarrow_forward
- Mind Tap- Cengage Learning gagenow.com/ilrn/takeAssignment/takeAssignmentMain.do?invoker=&takeAssignmentSessionLocator=&inprogress=false еВook Show Me How E Calculator Entries for Bond (Held-to-Maturity) Investments Instructions Chart of Accounts Journal (X Instructions Bula Investments acquired $245,200 of Effenstein Corp., 5% bonds at their face amount on October 1, 20Y1. The bonds pay interest on October 1 and April 1. On April 1, 20Y2, Bula sold $112,000 of Effenstein Corp. bonds at 101. Required: Journalize the entries to record the following a. The initial acquisition of the Effenstein Corp. bonds on October 1, 20Y1 - b. The adjusting entry for 3 months of accrued interest earned on the Effenstein Corp. bonds on December 31, 20Y1." c. The receipt of semiannual interest on April 1, 20Y2. " d. The sale of $112,000 of Effenstein Corp. bonds on April 1, 20Y2, at 101." e. The receipt of the face value of the remaining bonds at their maturity on October 1, 20Y8.* "Refer to the chart of…arrow_forwardnow.com/ilrn/takeAssignment/takeAssignment Main.do?invoker=&takeAssignmentSession Locator=&inprogress=false < 3. If an amount box does not require an entry, leave it blank. E 2. eBook a. Journalize the entries to record the following: 1. Issuance of the bonds. 2. First semiannual interest payment. The bond discount is combined with the semiannual interest payment. (Round your answer to the nearest dollar.) 3. Second semiannual interest payment. The bond discount is combined with the semiannual interest payment. (Round your answer to the nearest dollar.) 1. Show Me How On the first day of its fiscal year, Chin Company issued $26,800,000 of five-year, 11% bonds to finance its operations of producing and selling home improvement products. Interest is payable semiannually. The bonds were issued at a market (effective) interest rate of 13%, resulting in Chin receiving cash of $24,873,499. b. Determine the amount of the bond interest expense for the first year. c. Why was the company able to…arrow_forward25. Help me selecting the right answer. Thank youarrow_forward
- MC Qu. 41-16 When investors purchase a security... When investors purchase a security, they are buying which of the following? Multiple Choice O Only bonds Only stock A piece of paper What the paper representsarrow_forward7-10 onlyarrow_forwardIdentify each statement as true or false. If false, indicate how to correct the statement. (And you have forgotten to answer the right ans of false in the previous question)arrow_forward
- Liability management increases a bank's _________ risk and _________ risk.A. interest rate; priceB. liquidity; financialC. interest rate; financialD. price; interest ratearrow_forwardA 116. Subject:- financearrow_forwardDrill 2 Write your answer in a bond paper or intermediate paper. Label it Drill NO. 2. Answer in number 1 is given already as your guide ASSETS LIABILITIES OWNER'S EQUITY 1 P25,000.00 #5,000.00 P20,000.00 2 P65,500.00 P59,070.00 3 P255,000.00 P75,000.00 P540,000.00 P9,020,000.00 5 P564,000.00 P466,000.00 6 P321,000.00 P87,000.00 P234,000.00 P964,780.00 P200,780.00 P87,000.00 P567,330.00 P94,500.00 P12,110.00 10 P644,990.00 P319,990.00 11 B443,200.00 P325,000.00arrow_forward
arrow_back_ios
SEE MORE QUESTIONS
arrow_forward_ios
Recommended textbooks for you
Excel Applications for Accounting PrinciplesAccountingISBN:9781111581565Author:Gaylord N. SmithPublisher:Cengage Learning
Financial Accounting: The Impact on Decision Make...AccountingISBN:9781305654174Author:Gary A. Porter, Curtis L. NortonPublisher:Cengage Learning
Principles of Accounting Volume 1AccountingISBN:9781947172685Author:OpenStaxPublisher:OpenStax College
Excel Applications for Accounting Principles
Accounting
ISBN:9781111581565
Author:Gaylord N. Smith
Publisher:Cengage Learning
Financial Accounting: The Impact on Decision Make...
Accounting
ISBN:9781305654174
Author:Gary A. Porter, Curtis L. Norton
Publisher:Cengage Learning
Principles of Accounting Volume 1
Accounting
ISBN:9781947172685
Author:OpenStax
Publisher:OpenStax College
Bond Valuation - A Quick Review; Author: Pat Obi;https://www.youtube.com/watch?v=xDWTPmqcWW4;License: Standard Youtube License