ACC 306 Week 2 P14-21 Appling Enterprises

# ACC 306 Week 2 P14-21 Appling Enterprises

398.7k points

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? ACC 306 maddy ### 1 Answer Answered by 4 years ago 407.5k points #### Oh Snap! This Answer is Locked 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 facilities. In conjunction with recent operating leases, the company spent 28 million for seats and carpeting. The question being discussed over break- fast Filename: P 141 - Appling Enterprises.doc Filesize: 0.0 Downloads: 6 Print Length: 2 Pages/Slides Words: 263 ### Your Answer Surround your text in *italics* or **bold**, to write a math equation use, for example, $x^2+2x+1=0\$ or $$\beta^2-1=0$$

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