MCQ

Blockbuster Co is building a new state of the art Cineplex at a cost of $3,500,000. They received a capital investment of $1,500,000. The remainder of funds will have to be borrowed so they decided to issue bonds. They have issued 10.5%, 5-year bonds. These bonds were issued on January 1st, 2020, and pay semi-annual interest on July 1st and January 1st. The bonds yield 10%. The year-end is December 31st. Requirements: (Show all workings) I. Calculate the proceeds from the sale of the bond. Clearly, show the II. III. IV. amount of the premium or discount and state two reasons, which support the premium or discount calculated. Prepare a bond amortization schedule for the bond's life. Prepare all the journal entries for 2020, 2023 & 2025. Assume that on July 1 2023, Blockbuster Co. retires the bond at a cost of 1,065,000 plus accrued interest, if applicable. Prepare the journal entry to record this retirement.

What is the net income during year 2 on these accounting question?

Swifty Corporation received a check for $18240 on July 1 which represents a 6 month advance payment of rent on a building it rents to a client. Unearned Rent Revenue was credited for the full $18240. Financial statements will be prepared on July 31. Swifty should make the following adjusting entry on July 31: debit Unearned Rent Revenue, $18240; credit Rent Revenue, $18240. debit Cash, $18240; credit Rent Revenue, $18240. debit Rent Revenue, $3040; credit Unearned Rent Revenue, $3040. debit Unearned Rent Revenue, $3040; credit Rent Revenue, $3040.

The policy at Kingbird, Inc. is to record all office supplies as an asset at the time of purchase. On the last day of the accounting period, there are $1250 of office supplies on hand and the balance in the Supplies account is $3990. The adjusting journal entry would include A. a credit to Supplies for $1250. B, a debit to Supplies Expense for $1250. C. a credit to Supplies Expense for $2740. D. a credit to Supplies for $2740.

You are the partner-in-charge of a large metropolitan office of a regional public accounting firm. Two members of your professional staff have come to you to discuss problems that may affect the firm's independence. Neither of these situations has been specifically answered by the AICPA Professional Ethics Division. Case 2: Mary Reed, a new staff auditor with the firm, has recently separated from her husband. Mary has filed for divorce, but the divorce cannot become final for at least five months. The property settlement is being bitterly contested. Mary's husband has always resented her professional career and has just used community property to acquire one share of common stock in each of the publicly owned companies audited by the office in which Mary works. 1. What arguments would indicating that the firm's independence has not been impaired? 2. What arguments would indicating that the firm's independence has been impaired? 3. Which argument from part (a) or part (b) is the most…

The unadjusted trial balance for Blue Spruce Corp. appears as follows: Blue Spruce Corp. Trial Balance December 31, 2025 Cash Accounts Receivable Prepaid Insurance Supplies Equipment $370 647 102 223 4960 Accumulated Depreciation - Equipment $740 Accounts Payable 476 Common Stock 1490 Retained Earnings 1740 Service Revenue 3716 Salaries and Wages Expense 1240 Rent Expense 620 $8162 $8162 If on December 31, 2025, the expired prepaid insurance amounted to $25, the adjusting entry would include a debit to Prepaid Insurance for $77. debit to Prepaid Insurance for $25. O debit to Insurance Expense for $25. ○ credit to Prepaid Insurance for $77.

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