Đề KTTC

1. P13.
14
2. Information Related to Various Bond Issues) Karen Austin Inc. has issued three types of
debt on January 1, 2020, the start of the company’s fiscal year.
a. $10 million, 10-year, 15% unsecured bonds, interest payable quarterly. Bonds were priced
to yield 12%.
b. $25 million par of 10-year, zero-coupon bonds at a price to yield 12% per year.
c. $20 million, 10-year, 10% mortgage bonds, interest payable annually to yield 12%.
Instructions
Prepare a schedule that identifies the following items for each bond: (1) maturity value, (2)
number of interest periods over life of bond, (3) stated rate per each interest period, (4)
effective-interest rate per each interest period, (5) payment amount per period, and (6)
present value of bonds at date of issue.
3. Peter Company sold the following bond on January 1, 2023: $100.000; 4% bonds due on
01/01/2028 with payments semiannually on January 1 and July 1.
The current market rate of interest on the date of sale was 6%.
Assume the sales price was $91,470
Required:
1. Use the effective interest rate method of amortization to prepare the Schedule of Bond
Discount Amortization and explain number on the Schedule of Bond Discount
Amortizzxation
2. Prepare the journal entry at the date of the bond issuance and the interest payment and
the amortization for 2023.
Answer:
Carrying
Cash Interest Discount Amount
Date Paid Expense Amortized of Bonds
1/1/2023 $91.470
7/1/2023 $2.000 $2.744 $744 $92.214
1/1/2024 $2.000 $2.766 $766 $92.980
7/1/2024 $2.000 $2.789 $789 $93.770
1/1/2025 $2.000 $2.813 $813 $94.583
7/1/2025 $2.000 $2.837 $837 $95.420
1/1/2026 $2.000 $2.863 $863 $96.283
7/1/2026 $2.000 $2.888 $888 $97.171
1/1/2027 $2.000 $2.915 $915 $98.087
7/1/2027 $2.000 $2.943 $943 $99.029
1/1/2028 $2.000 $2.971 $971 $100.000
Journal entry at the date of the bond issuance and the interest payment and the
amortization for 2023.
4. During Year 1, Min Company incurred costs to develop and produce a routine, low – risk
computer software product, as described below:
Completion of detail program design: $12,000
Costs incurred for coding and testing to establish technological feasibility: $12,000.
Other coding costs after establishment of technological feasibility: $24,000
Other testing costs after establishment of technological feasibility: $19,000
Costs of producing product masters for training materials: $13,000
Duplication of computer software and training materials from product masters (1,000 units):
$22,000
Packaging product (500 units) :$8,000
Instructions
1. In Min’s December 31, Year 1, balance sheet, what amount should be reported in
inventory?
2. In Min’s December 31, Year 1, balance sheet, what amount should be capitalized as
software cost subject to amortization?u
5. On June 2, Year 1,Ton Company issued $500,000 of 10%, 10 year bonds at par. Interest is
payable seminannually on June 1 and December 1. Bond issue costs were $9,000 and Ton
uses the straight-line method of amortizing bond issue costs. On June 2, Year 6, Tony retired
half of the bonds at 98. What is the net carring amount that Ton should use in computing the
gain or loss on retirement of debt?
6. On January 1, 2023, Aumont Company sold 12% bonds having a maturity value of
$500,000 for $537,907.37, which provides the bondholders with a 10% yield. The bonds are
dated January 1, 2023, and mature January 1, 2028, with interest payable December 31 of
each year. Aumont Company allocates interest and unamortized discount or premium on the
effective-interest basis.
Instructions
(Round answers to the nearest cent.)
a. Prepare the journal entry at the date of the bond issuance.
b. Prepare a schedule of interest expense and bond amortization for 2023–2025.
c. Prepare the journal entry to record the interest payment and the amortization for
2023,2024, 2025.
6. On January 2, Pan Co acquired Shen Co in a business combination that resulted in
recognition of goodwill of $300,000 having an expected benefit period of 10 years. Shen is
treated as a reporting unit, and the entire amount of the recognized goodwill is assigned to
it. During the first quarter of the year. Shen spent an additional $50,000 on expenditures
designed to maintain goodwill. Due to these expenditures, at December 31, Shen estimated
that the benefit period of goodwill was 40 years.In its consolideted December 31 balance
sheet, what amount should Pan report as goodwill?
7. dean Company is a calendar year entity with a complex capital structure. Can reported a
loss on discontinued operations (net of tax) of $1,200,000 in the first quarter when ít income
before the loss was $1,000,000
The average market price of Carolina’s common stock for the first quarter was $25, the
shares outstanding at the beginning of the period equaled 300,000 and 12,000 shares were
issued on March 1.
At the begining of the quarter, Can had outstanding $2,000,000 of 5% convertible bonds,
with each $1,000 bond convertible into 10 shares of common stock. No bonds were
converted.
At the begining of the quater, Can also had out standing 120,000 shares of preferred stock
paying a dividend of $0,1 per share at the end of each quarter and convertible to common
stock on a one-to-one basis. Holder of 60,000 shares of preferred stock exercised their
conversion privillege on February 1.
Throughout the first quater, warants to buy 50,000 shares of Can’s common stock for $28 per
share were outstanding but unexercised. Can’s tax rate was 30%.
Require:
1. Compute basic earnings per share for net income or loss.
2. Compute the weight-average number of shares used to calculate dilutive earning per share
amounts for the first quarter.
3. Compute dilutive earning per share for net income or loss.
4. Compute the effect of assumed conversions on the numerator of the dilutive earning per
share fraction.

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1. P13.

1. Compute basic earnings per share for net income or loss.

3. Compute dilutive earning per share for net income or loss.

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