Reference no: EM132580517

Question 1: On January 1, 2021, $910000, 5-year, 4% bonds, were issued for $832350. The interest rate in effect when the bonds were issued was 5%. Interest is paid semi-annually on January 1 and July 1. What would be the amount of discount amortized on July 1, 2021? (Round intermediate calculations to 5 decimal places.)

Question 2: A corporation issued $191000, 8%, 5-year bonds on January 1, 2021 for $207292 which reflects an effective-interest rate of 6%. Interest is paid semi-annually on January 1 and July 1. The amount of bond interest expense to be recognized on July 1, 2021, is (Round intermediate calculations to decimal places.)

Question 3: On January 1, 2021, Bramble Limited issues a $27232, 5% 3-year note payable. The note calls for three annual payments of $10000, blended principal and interest. The first payment is to be made on December 31, 2021. The total amount of interest that will be paid over the term of the loan is...

Question 4: Favaro Company purchased 25% of the outstanding common shares (10,000 shares) of ABC Company for $65,000 on August 1. At December 31, Favaro's year end, ABC's shares are selling for $7 and ABC reported net income of $160,000. Assuming Favaro accounts for the investment using the equity method, the adjustment to the investment account at year end would be.....

Question 5: On January 1, 2021, Cheyenne Corporation purchased 32% of the common shares of Coronado Limited for $403000. During 2021, Coronado Limited paid cash dividends of $50000 and had profit of $290000. During the same period, Cheyenne earned $506000 and paid dividends of $121000. Both corporations have a December 31 year end. On December 31, 2021, the balance in Cheyenne's Investment in Associate-Coronado Common Shares account is