ACC 306 Week 2 P14-21 Appling Enterprises


Asked by 1 year ago
19.9 billion brain cells

ACC 306 Week 2 P14-21 Appling Enterprises

Appling Enterprises issued 8% bonds with a face amount of $400,000 on January 1, 2011. The bonds sold for $331,364 and mature in 2030 (20 years). For bonds of similar risk and maturity the market yield was 10%. Interest is paid semiannually on June 30 and December 31. Appling determines interest expense at the effective rate. Appling elected the option to report these bonds at their fair value. The fair values of the bonds at the end of each quarter during 2011 as determined by their market values in the over-the-counter market were the following: March 31     $ 350,000 June 30        340,000 September 30        335,000 December 31       342,000 Required: 1.     By how much will Applings earnings be increased or decreased by the bonds (ignoring taxes) in the March31 quarterly financial statements? 2.    By how much will Applings earnings be increased or decreased by the bonds (ignoring taxes) in the June 30 quarterly financial statements? 3.    By how much will Applings earnings be increased or decreased by the bonds (ignoring taxes) in the September 30 quarterly financial statements? 4.    By how much will Applings earnings be increased or decreased by the bonds (ignoring taxes) in the December 31 annual financial statements?

1 Answer

Answered by 1 year ago
20.4 billion brain cells

Verified Expert Answer -- Instant Download

Thumbnail of first page

Excerpt from file: Ethics Case 154 - American Movieplex - Leasehold improvements LO3 American Movieplex, a large movie theater chain, leases most of its theater

Filename: P 1421 - Appling Enterprises.doc

Filesize: 0.0

Downloads: 2

Print Length: 2 Pages/Slides

Words: 258


Account not required

Answer this question

Surround your text in *italics* or **bold**, to write a math equation use, for example, $x^2+2x+1=0$ or $$\beta^2-1=0$$
Use LaTeX to type formulas and markdown to format text. See example.

Create Account

  • Welcome! Please create an account to answer this question.

Already a member?

  • Welcome! Sign-in to answer this question.