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Question
When Cheery records interest expense on December 31, 2012 the entry will include
A. A debit to interest expense for 25 million.
B. A credit to Convertible notes payable for 12.5 million.
C. A debit to Convertible notes payable for 17.5 million.
D. A credit to Convertible notes payable for 5 million.
Answer
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Related questions
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Briefly explain the forces behind the rise of IFRS.
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D. follow a more generalized overview approach than do U.S. GAAP counterpart standards.
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Increase in prepaid expenses: $14,000
Amortization of discount on bonds payable: $10,000
Decrease in accounts payable: $20,000
Increase in inventory: $21,000
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Dividends paid: $36,000
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Q:
Which of the following correctly describes U.S. GAAP accounting for convertible bonds and the implication of that requirement?
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Cash dividends were paid to the common shareholders.
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550,000 shares of common stock were outstanding on January 1, 2011.
Bonds convertible into 50,000 shares of common stock were issued on July 1, 2011; the bonds have been determined to be dilutive.
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C. The company might have convertible bonds outstanding.
D. The company must have participating preferred stock outstanding.
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Which of the following is not indicative of a complex capital structure?
A. Outstanding convertible bonds.
B. Outstanding convertible preferred stock.
C. Outstanding cumulative preferred stock.
D. Outstanding stock options.
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Assuming that the preferred stock is cumulative, and that there are no dividends in arrears, what is the maximum dividend that may be distributed to common shareholders at December 31, 2012?
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Q:
What is the owners' equity balance on December 31, 2012?
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B. $8,738,350
C. $8,865,850
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What is the retained earnings balance on December 31, 2012?
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Which of the following does not accurately describe the proprietary view of the firm?
A. Its focus is on the firm's net assets.
B. It is the prevailing view of GAAP.
C. Its focus is on owners' equity.
D. Whether creditors or shareholders provided the firm's assets is irrelevant.
Q:
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Q:
SFAS No. 123 required companies to use the fair value approach when determining compensation expense pertaining to stock options.