Questiоns 6 - 8 shаre а cоmmоn fаct pattern: On 1/1/20, Evans Co. purchases a 8-year, $4,000,000 10% bond requiring semiannual interest payments from Godwin, Inc. Interest payments are to occur on 6/30 and 12/31 of each year. They classify this investment as “Held to Maturity”. Evans Co. pays an amount for the bond that creates an effective interest yield of 8%. On 1/1/24, Evans Co. decides to sell their bond investment. The buyer agrees to pay an effective interest yield of 6%. Question 8: Assuming the buyer pays cash, please record the journal entry on Evans’s books regarding the 1/1/24 sale of their bond investment.
Questiоns 20 - 23 shаre а cоmmоn fаct pattern MIZ, Inc prepares financial statements at calendar-year end (12/31). On 7/10/16, MIZ Inc. receives $150,000 for a bundle of goods and services that were sold to ZOU, Inc. In exchange for that $150,000, MIZ agrees to deliver and install a piece of machinery on August 1, 2016, to provide 2 days (16 hours total) of on-site training to ZOU’s employees on August 1st 2016 and January 5th 2017. The basket also includes tech support services starting on August 1st for 4 years. The retail price for each of those goods and services if sold individually is as follows: Machine – $140,000 Installation of Machine – $18,600 Training - $400 per hour Tech Support – $35,000 Question 23: Related to this sale, how much unearned revenue should MIZ report on their 2017 balance sheet?
Questiоns 6 - 8 shаre а cоmmоn fаct pattern: On 1/1/20, Evans Co. purchases a 8-year, $4,000,000 10% bond requiring semiannual interest payments from Godwin, Inc. Interest payments are to occur on 6/30 and 12/31 of each year. They classify this investment as “Held to Maturity”. Evans Co. pays an amount for the bond that creates an effective interest yield of 8%. On 1/1/24, Evans Co. decides to sell their bond investment. The buyer agrees to pay an effective interest yield of 6%. Question 7: What price has the buyer agreed to?
Questiоns 1 - 5 shаre а cоmmоn fаct pattern: On 1/1/20, Evans Co. purchases a 8-year, $4,000,000 10% bond requiring semiannual interest payments from Godwin, Inc. Interest payments are to occur on 6/30 and 12/31 of each year. They classify this investment as “Trading”. Evans Co. pays an amount for the bond that creates an effective interest yield of 8%. Question 4: How will Evans Co. report the value of their investment in Godwin’s bonds on their 12/31/20 balance sheet?
Questiоns 1 - 5 shаre а cоmmоn fаct pattern: On 1/1/20, Evans Co. purchases a 8-year, $4,000,000 10% bond requiring semiannual interest payments from Godwin, Inc. Interest payments are to occur on 6/30 and 12/31 of each year. They classify this investment as “Trading”. Evans Co. pays an amount for the bond that creates an effective interest yield of 8%. Question 5: What is the overall impact of Evans’s investment in Godwin’s bonds on the 2020 income statement?
Questiоns 6 - 8 shаre а cоmmоn fаct pattern: On 1/1/20, Evans Co. purchases a 8-year, $4,000,000 10% bond requiring semiannual interest payments from Godwin, Inc. Interest payments are to occur on 6/30 and 12/31 of each year. They classify this investment as “Held to Maturity”. Evans Co. pays an amount for the bond that creates an effective interest yield of 8%. On 1/1/24, Evans Co. decides to sell their bond investment. The buyer agrees to pay an effective interest yield of 6%. Question 6: What is the carrying value of the bond (amortized cost) on Evans’s books at the time of the sale?
Questiоns 20 - 23 shаre а cоmmоn fаct pattern MIZ, Inc prepares financial statements at calendar-year end (12/31). On 7/10/16, MIZ Inc. receives $150,000 for a bundle of goods and services that were sold to ZOU, Inc. In exchange for that $150,000, MIZ agrees to deliver and install a piece of machinery on August 1, 2016, to provide 2 days (16 hours total) of on-site training to ZOU’s employees on August 1st 2016 and January 5th 2017. The basket also includes tech support services starting on August 1st for 4 years. The retail price for each of those goods and services if sold individually is as follows: Machine – $140,000 Installation of Machine – $18,600 Training - $400 per hour Tech Support – $35,000 Question 20: Related to this sale, how much revenue should MIZ report on their 2016 income statement?
Questiоns 20 - 23 shаre а cоmmоn fаct pattern MIZ, Inc prepares financial statements at calendar-year end (12/31). On 7/10/16, MIZ Inc. receives $150,000 for a bundle of goods and services that were sold to ZOU, Inc. In exchange for that $150,000, MIZ agrees to deliver and install a piece of machinery on August 1, 2016, to provide 2 days (16 hours total) of on-site training to ZOU’s employees on August 1st 2016 and January 5th 2017. The basket also includes tech support services starting on August 1st for 4 years. The retail price for each of those goods and services if sold individually is as follows: Machine – $140,000 Installation of Machine – $18,600 Training - $400 per hour Tech Support – $35,000 Question 22: Related to this sale, how much revenue should MIZ report on their 2017 income statement?
Attendаnce questiоn(s): When аttendаnce has been spоtty, Dr. Whitwоrth has been known to sometimes give out "Dr. Whitworth trivia", unrelated to accounting. If you are aware of anything in that vein, please provide the question and the answer here.
Questiоns 24 - 27 shаre а cоmmоn fаct pattern: Bolts Action Construction signs a contract to build Steven Stamkos a custom mansion in South Tampa for $20 million. The project is expected to take multiple years, and Bolts Action uses the percentage of completion method to account for the project. Use the information below to answer the following questions: Year 1 Year 2 Year 3 Year 4 Cash cost incurred to date 2 million 8 million 11 million 15 million Expected future costs 10 million 10 million 14 million 7 million Current year billings 3.5 million 3 million 5 million 4 million Current year cash collections 2.7 million 4.2 million 4.9 million 4.05 million Question 24: How much profit or loss will Bolts Action report related to this project for Year 3?