Accounting 101

Topics: Balance sheet, Generally Accepted Accounting Principles, Liability Pages: 0 (1471 words) Published: August 31, 2014
EXAM3 EXTRA CREDIT
1.
 
 
 
 

Ultimate Butter Popcorn issues 6%, 6-year bonds with a face amount of $47,000. The market interest rate for bonds of similar risk and maturity is 6%. Interest is paid semiannually.

At what price will the bonds issue? (Do not round PV factors. Round your answer to the nearest dollar amount. Omit the "$" sign in your response.)  
  Issue price
$ 47,000   
2.
 
 
 
 

Ultimate Butter Popcorn issues 7%, 6-year bonds with a face amount of $49,000. The market interest rate for bonds of similar risk and maturity is 8%. Interest is paid semiannually.

At what price will the bonds issue? (Do not round PV factors. Round your answer to the nearest dollar amount. Omit the "$" sign in your response.)  
  Issue price
$ 46,701   
3.
 
 
 
 

Ultimate Butter Popcorn issues 5%, 5-year bonds with a face amount of $52,000. The market interest rate for bonds of similar risk and maturity is 4%. Interest is paid semiannually.

At what price will the bonds issue? (Do not round PV factors. Round your answer to the nearest dollar amount. Omit the "$" sign in your response.)  
  Issue price
$ 54,336   

4.
 
 
 
 

Discount Pizza retires its 5% bonds for $54,000 before their scheduled maturity. At the time, the bonds have a carrying value of $52,355.  
Record the early retirement of the bonds. (Omit the "$" sign in your response.)  
General Journal
Debit
Credit
  Bonds payable 
    
 
  Loss 
    
 
       Cash 
 
54,000   
5.
 
 
 
 

Premium Pizza retires its 7% bonds for $60,000 before their scheduled maturity. At the time, the bonds have a carrying value of $63,008.  
Record the early retirement of the bonds. (Omit the "$" sign in your response.)  
General Journal
Debit
Credit
  Bonds payable 
  63,008 
 
       Gain 
 
   
       Cash 
 
   
CEC Entertainment , which owns the Chuck E. Cheese pizza chain, has the following selected data ($ in millions):  
CEC...
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