Reference no: EM132585300

Question 1) Annapolis Company purchased a $2,000, 5%, 9-year bond at 97 and held it to maturity. The straight line method of amortization is used for both premiums & discounts. What is the net cash received over the life of the bond investment? (all money received minus all money paid, round to nearest whole dollar)

Question 2) Ocean Pines Company had net income $525,000. They also had depreciation expense of $125,000, an increase or (decrease) in accounts receivable of $30,000, and an increase or (decrease) in inventory of $45,000. Ocean Pines prepares their Statement of Cash Flows using the indirect method. Use this information to determine the dollar value of cash provided or (used) by operating activities. If the total is a use of cash, enter as a negative number. (a negative number for accounts receivable or inventory indicates that the balance decreased)

Question 3) On January 2, 2019, All Good Company purchased 5,000 shares of the stock of Big Bad Company, and DID NOT obtain significant influence. The investment is intended as a long-term investment. The stock was purchased for $16 per share, and represents a 10% ownership stake. Big Bad Company made $350,000 of net income in 2019, and paid dividends to All Good Company of $7,500 on December 15, 2019. On December 31, 2019, Big Bad Company's stock was trading on the open market for $11.50 per share at the end of the year. Use this information to determine the unrealized gain or loss on the investment that should be reported at year end by All Good Company. If it is a loss, enter as a negative number. Round to nearest whole dollar.

Question 4) On January 2, 2018, All Good Company purchased 10,000 shares of the stock of Big Bad Company, and DID obtain significant influence. The investment is intended as a long-term investment. The stock was purchased for $14 per share, and represents a 30% ownership stake. Big Bad Company made $400,000 of net income in 2018, and paid dividends to All Good Company of $25,000 on December 15, 2018. Big Bad Company's stock was trading on the open market for $12 per share at the end of the year. Use this information to determine the book value of the investment that should be reported at year end by All Good Company. Round to nearest whole dollar.

Question 5) Allstar Company signed a $250,000 mortgage on July 1, 2018 for the purchase of their new garage building. The mortgage entailed equal monthly payments of $2,700 at the end of each month. The interest rate is 8.0% per year. How much interest expense will be paid on August 31, 2018? (Round your answer to the nearest whole dollar.)